If an Economist Supports Targeting Inflation as Opposed to Monetary

question 32

Multiple Choice

If an economist supports targeting inflation as opposed to monetary fine-tuning,this economist probably believes that time lags in the implementation of monetary policy are

• A)short but predictable.
• B)short but unpredictable.
• C)long and unpredictable.
• D)long but predictable.
• E)predictable in their short-run effects but unpredictable in the long run.

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Definitions:

Scrutiny

The act of closely examining or inspecting something to ensure accuracy, authenticity, or conformance to standards.

Competition

The rivalry among businesses or individuals for customers, market share, or achievements.

Per Se Approach

A legal standard that deems certain actions to be inherently illegal without needing to prove harm or anticompetitive effects.

Fixed Price

An agreed upon price for goods or services that is not subject to change under normal circumstances.