The Heads of Central Banks Are Typically Very Conservative About

question 146

Multiple Choice

The heads of central banks are typically very conservative about inflation because:

• A) they can influence expectations of inflation and those, in turn, influence actual behavior.
• B) they can influence rational expectations and those, in turn, influence irrational expectations.
• C) they can influence the budget deficit and, in turn, promote hyperinflation.
• D) they can influence expectations of government spending and those, in turn, influence nominal wages.

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Definitions:

Services Gap

The discrepancy between customers’ expectations of service quality and their actual experiences.

Service Expectations

The preconceived notions or standards that customers have regarding the levels of service they should receive.

Perishability

A characteristic of a service.

Service Quality Dimensions

Aspects used to evaluate the quality of service, including reliability, responsiveness, empathy, assurance, and tangibles.