Multiple Choice
Zero inflation
A) might be dangerous because it could lead to rapidly increasing prices.
B) would limit the flexibility of the labor market and so could at times raise unemployment.
C) would make it easy for the Central bank to create negative real interest rates.
D) is impossible to achieve in the real world.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: Which of the following is not a
Q36: If a central bank were required to
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Q38: An individual would suffer lower losses or
Q39: Which costs of inflation could the government
Q41: A program to reduce inflation is likely
Q42: Proponents of zero inflation argue that reducing
Q43: An economist would be more likely to
Q44: In the early 1980's the Fed tightened
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