Permanent Declines in Inflation Such as Those Seen in Chile

question 71

Multiple Choice

Permanent declines in inflation such as those seen in Chile and Sweden must have been a result of:

• A) an increase in the central bank's inflation target.
• B) a decrease in the central bank's inflation target.
• C) less independence for their central banks.
• D) a change to targeting interest rates instead of inflation rates.

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Definitions:

Major

Often used to describe the primary or most abundant product or outcome in a chemical reaction or process.

Stereochemistry

A branch of chemistry focused on the study of the spatial arrangements of atoms in molecules and their effects on chemical reactions.

Organic Product

A compound or material derived from living organisms or produced by reactions involving organic compounds.

Major

Referring to the most prevalent or significant component, outcome, or factor in a given context, often contrasted with "minor."