Many Central Banks Have Established Formal Targets for the Rate

question 47

Multiple Choice

Many central banks have established formal targets for the rate of inflation because of the following fundamental observations about economic relationships: 1.there are high costs associated with inflation
2.high inflation causes high unemployment
3.monetary policy is the cause of sustained inflation

• A)1 only
• B)2 only
• C)3 only
• D)1 and 3 only
• E)1,2,and 3

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Definitions:

Process Checks

Regular evaluations or assessments of procedures to ensure they are effective and followed correctly.

Frustration

A feeling of upset or annoyance as a result of being unable to change or achieve something.

Loss of Work Time

The time during which employees are not productive due to various factors such as illness, breaks, or inefficiencies.

Cost Per Minute

The expense associated with each minute of operation or service provision, used for budgeting and pricing.