Which of the Following Can Lead to Expectations of Future

question 17

Multiple Choice

Which of the following can lead to expectations of future price stability?

• A) The central bank is credible in achieving the inflation target.
• B) Nominal wages are sticky and adjust slowly.
• C) Costs rise in tandem with wages.
• D) Commodity, fuel and food prices rise very quickly.

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Definitions:

Global Perspective

The understanding and consideration of diverse cultures, economies, and geopolitical factors in decision-making and strategy formulation on an international scale.

SADC

Southern African Development Community, a regional organization aimed at economic integration and development in Southern Africa.

Southeast Asia

A geographic region located to the south of China and to the east of India, known for its diverse cultures, languages, and economies.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing environmental conservation, social equity, and economic growth.