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.

---

Definitions:

Brain Area

Specific regions within the brain that are associated with particular functions, such as the frontal lobes with decision making or the hippocampus with memory.

Endorphins

Natural chemicals in the body that interact with the brain's receptors to reduce pain and boost pleasure, resulting in a feeling of well-being.

Social Contact

Interaction between individuals that can lead to a sense of connection and community.

Bond

A connection, physical or emotional, that forms between individuals, such as between parents and children or between friends.