Which of the Following Statements Is True About Inflationary Expectations

question 79

Multiple Choice

Which of the following statements is true about inflationary expectations?

• A) Near-term inflationary expectations are less volatile than long-term inflationary expectations.
• B) Near-term inflationary expectations are much more volatile than long-term inflationary
• C) Inflation targets are a weak tool for controlling inflationary expectations.
• D) The central bank's ability to keep inflation at target levels plays an insignificant role in