Proponents of Inflation Targeting Generally Think That

question 24

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:

Salary Allowances

Compensation above the base pay, often for specific purposes such as housing, transportation, or cost of living adjustments.

Profit And Loss

A financial statement detailing the revenues, costs, and expenses incurred during a specific period, highlighting a company's net profit or loss.

Two Proprietorships

Two separate businesses or commercial ventures, each owned by a single individual.

Fair Value

An assessment of an asset or liability's market worth, determined by current market rates or appraisals.