One Reason Most Central Bankers Do Not Set an Inflation

question 85

Multiple Choice

One reason most central bankers do not set an inflation target of zero is:

• A) it is almost impossible to achieve.
• B) they believe it would cause price volatility.
• C) the central bank could hit the lower bound.
• D) none of the answers given is correct.

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Definitions:

Parental Leave Rights

Legal entitlements allowing parents to take time off work to care for their child or children, typically after the birth or adoption.

Legislation

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Family Development Theories

A set of theoretical perspectives that focus on the systematic and patterned changes families undergo over time.

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