Which of the Following Is Not a Reason That the Central

question 50

Multiple Choice

Which of the following is not a reason that the central bank does not aim for zero inflation?

• A) Measured inflation tends to be higher than actual inflation.
• B) The inflation rate would be more likely to be negative.
• C) This would limit the ability of the central bank to stimulate the economy
• D) Positive inflation "greases the wheels" of the labour market.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variance in a set of values, indicating how spread out the numbers are from the average.

Range

The difference between the highest and lowest values in a set of data, indicating the dataset's dispersion.

Median

The middle value in a set of numbers, which separates the higher half from the lower half of the data set.

Upper Quartile

A statistical measure indicating the value below which 75% of the data in a data set falls, marking the top end of the middle 50% of data.