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If a Central Bank Were Required to Target Inflation at Zero,then

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If a central bank were required to target inflation at zero,then when there was a negative aggregate supply shock the central bank

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Definitions:

Maturity Factoring

A financing method where a business sells its invoices to a factor at a discount but receives payment only when the customer pays the invoice at maturity.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Inventory

A company's stock of the products available for sale to customers, as well as raw materials and work-in-progress that will eventually become finished goods.

Accounts Receivable

Funds that are due to a business from its clients for goods or services already provided but not yet compensated for.

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