If a Central Bank Persistently Fails to Deliver the Target

question 64

True/False

If a central bank persistently fails to deliver the target inflation rate, then long-term inflationary expectations are likely to be different from the target rate.

---

Definitions:

Water Table

The upper surface of the saturated zone in an unconfined aquifer, below which the ground is fully saturated with water.

Saturated Zone

The area in the subsurface where water fills nearly all the pore spaces.

Unsaturated Zone

A part of the subsurface where most of the pore spaces are filled with air rather than water.

Groundwater

Water that collects or flows beneath the Earth's surface, filling the porous spaces in soil, sediment, and rocks, and often providing a vital source of water for drinking and irrigation.