Which of the Following Benefits Flow from the Application of an Inflation-Control

question 76

Multiple Choice

Which of the following benefits flow from the application of an inflation-control target?

• A)If actual inflation exceeds the target range, the Bank of Canada can induce a recession to correct the matter.
• B)The monetary authorities can change the target range whenever they feel it is appropriate.
• C)People can make decisions with an understanding that inflation rates will remain relatively low.
• D)Financial market traders have a clearer understanding of the Bank of Canada's intentions.
• E)Both C and D

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