Proponents of Inflation Targeting Generally Think That

question 161

Multiple Choice

Proponents of inflation targeting generally think that

• A)the economy will have fewer, shorter, and less severe business cycles if the Fed holds the rate of inflation to low, targeted levels from year to year.
• B)low interest rates are inflationary and high interest rates are deflationary.
• C)fiscal policy is more effective in stabilizing the economy than monetary policy.
• D)the Fed should strive to achieve zero inflation.

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Definitions:

Duty of Obedience

is the responsibility of the directors and officers of a corporation to act in accordance with the corporation's charter, bylaws, and the law in decision-making processes.

Lawful Instruction

Refers to directives or orders given that are within the bounds of the law and ought to be followed by the recipients.

Apparent Authority

A situation in which a reasonable third party would understand that an agent had authority to act, even if the agent did not have actual authority.

Express Agency

A type of agency relationship explicitly agreed upon by the principal and agent, either orally or in writing.