All of the Following Are Reasonable Arguments Against Adopting a Zero

question 23

Multiple Choice

All of the following are reasonable arguments against adopting a zero inflation target EXCEPT that a zero inflation target:

• A) makes the undesirable effects of deflation more likely.
• B) prevents the central bank from achieving a negative real interest rate.
• C) is not consistent with long-run price stability.
• D) based on the CPI would not generate "true" price stability because of CPI measurement problems.

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Definitions:

Formal Charge

A concept in chemistry that represents the charge assigned to an atom in a molecule, assuming that electrons in all chemical bonds are shared equally between atoms, irrespective of electronegativity.

Nitrogen Atoms

Atoms that have five electrons in their outer shell and are essential components of amino acids, proteins, and nucleic acids.

Non-Zero Formal Charges

The scenario in which atoms within a molecule have a formal charge other than zero, indicating an unequal distribution of electrons.

Sugar Consumption

The amount of sugar ingested by an individual or population within a specified time period.