Many Central Banks Have Established Formal Targets for the Rate

question 80

Multiple Choice

Many central banks have established formal targets for the rate of inflation because of the following fundamental observations about economic relationships: 1.There are high costs associated with inflation.
2.High inflation causes high unemployment.
3.Monetary policy is the cause of sustained inflation.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 3 only
• E)1,2,and 3

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Definitions:

Defective Corporation

A corporation that has not completely complied with all legal requirements for incorporation, but may still operate as a corporation under certain conditions.

Shareholder Manager

A shareholder who also plays a direct role in the management of a company.

Passive Shareholder

An investor who holds a stake in a company but does not take part in day-to-day management or operational decisions.

Authorized Shares

Shares that a corporation is empowered to issue by its articles of incorporation.