An Economist Advising a Central Bank Intending to Reduce the Inflation

question 33

Multiple Choice

An economist advising a central bank intending to reduce the inflation rate would likely point out that

• A)the costs of reducing inflation persist and the costs of reducing it do not depend on the public's inflation expectations.
• B)the costs of reducing inflation persist,but they are smaller if the public reduces its inflation expectations.
• C)the costs of reducing inflation are temporary and the costs of reducing it do not depend on the public's inflation expectations.
• D)the costs of reducing inflation are temporary and the costs are smaller if the public reduces its inflation expectations.

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Definitions:

Zygote

The initial cell formed when a new organism is produced by sexual reproduction, containing genetic material from both the mother and father.

Placenta

An organ that connects the developing fetus to the uterine wall, allowing for nutrient uptake, waste elimination, and gas exchange via the mother's blood supply.

Uterus

A muscular organ in the female reproductive system where a fertilized egg develops into a fetus.

Monozygotic Twins

Twins that originate from a single zygote splitting and developing into two individuals with nearly identical genetic makeup.