When Expectations of Inflation Are Formed Rationally,an Anti-Inflationary Policy Will

question 13

Multiple Choice

When expectations of inflation are formed rationally,an anti-inflationary policy will be more successful if it is

• A)credible.
• B)a surprise.
• C)unanticipated.
• D)announced.

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Definitions:

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of accounting rules for financial reporting.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) for international use.

U.S. GAAP

The codification of how financial transactions and events are to be reported in the financial statements, developed and maintained by the Financial Accounting Standards Board (FASB) for the United States.

Straight-Line Method

A depreciation method where an equal amount of depreciation expense is allocated for each year of the asset's useful life.