One Reason Most Central Bankers Do Not Set an Inflation

question 14

Multiple Choice

One reason most central bankers do not set an inflation target of zero is:

• A)it is almost impossible to achieve.
• B)they believe it would cause price volatility.
• C)the central bank could hit the zero nominal-interest-rate bound.
• D)none of the answers given is correct.

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Definitions:

Restriction Enzymes

Enzymes used in molecular biology to cut DNA at specific sequences, allowing for DNA manipulation in genetic engineering and research.

PCR Cycle

A series of temperature-controlled steps in Polymerase Chain Reaction that allows for the replication and amplification of a specific DNA segment.

Inactivate

To make something inactive or ineffective, often used in the context of deactivating enzymes, viruses, or genes.