If an Economist Supports Targeting Inflation as Opposed to Monetary

question 32

Multiple Choice

If an economist supports targeting inflation as opposed to monetary fine-tuning,this economist probably believes that time lags in the implementation of monetary policy are

• A)short but predictable.
• B)short but unpredictable.
• C)long and unpredictable.
• D)long but predictable.
• E)predictable in their short-run effects but unpredictable in the long run.

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Definitions:

Testing Bias

A flaw in the design, administration, or interpretation of tests that results in systematically unfair outcomes or assessments for certain groups of people.

Fluid Intelligence

The capacity to solve novel problems, reason abstractly, and identify patterns, without relying on existing knowledge.

Crystallized Intelligence

A type of intelligence that involves the ability to use learned knowledge and experience, typically remains stable or increases with age.

Intelligence Growth

The development or increase in cognitive abilities, including problem-solving, learning, reasoning, and understanding, often through education and experiences.