An Economist Would Be More Likely to Argue Against Reducing

question 26

Multiple Choice

An economist would be more likely to argue against reducing inflation if she thought that

• A)the central bank lacked credibility and if bonds were usually not indexed for inflation.
• B)the central bank lacked credibility and if bonds were usually indexed for inflation.
• C)the central bank had credibility and if bonds were usually not indexed for inflation.
• D)the central bank had credibility and if bonds were usually indexed for inflation.

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