Which of the Following Statements Is False Concerning Policies to Reduce

question 81

Multiple Choice

Which of the following statements is false concerning policies to reduce inflation?

• A) They are likely to have a lower cost if people think that the central bank is credible.
• B) They have permanent benefits.
• C) They are likely to be more credible if the government also makes an attempt to reduce the budget deficit.
• D) The costs are likely to exceed the benefits.