In Both New Zealand and Canada,what Has Happened to the Unemployment

question 16

Multiple Choice

In both New Zealand and Canada,what has happened to the unemployment rate since the countries adopted inflation targeting?

• A)The unemployment rate increased sharply.
• B)The unemployment rate remained constant.
• C)The unemployment rate has declined substantially after a sharp increase.
• D)The unemployment rate declined sharply immediately after the inflation targets were adopted.

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Definitions:

Profitability

A measure of how much profit a company generates compared to its revenues.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Liquidity

The ease with which an asset can be converted into cash without significant loss in value.