If a Central Bank Engages in Inflation Targeting, Then

question 31

Multiple Choice

If a central bank engages in inflation targeting, then

• A)it will not change interest rates in response to output fluctuations
• B)it will change interest rates aggressively as soon as inflation or output changes
• C)it will lower interest rates aggressively as soon as inflation heats up
• D)it will increase interest rates aggressively as soon as aggregate supply increases
• E)none of the above

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Definitions:

Indigenous People

Ethnic groups who are the original inhabitants of a given region, having pre-colonial historical ties to the land and distinct cultural, social, and economic practices.

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Categorizations of individuals and groups based on economic, occupational, or social status within society.

Labor Movement

The collective organization of working people developed to pursue policies and reforms beneficial to laborers.

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