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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An antisocial youth subculture.

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