The Canadian Inflation Experience from 1960-2002

question 34

Multiple Choice

The Canadian inflation experience from 1960-2002

• A) can be explained equally plausibly by the Central Bank Learning Story and the Central Bank Commitment Story.
• B) can be explained by the Central Bank Learning Story, but not the Central Bank Commitment Story.
• C) can be explained by the Central Bank Commitment Story, but not the Central Bank Learning Story.
• D) cannot be explained by either the Central Bank Learning Story or the Central Bank Commitment Story.
• E) can be explained by the Central Bank Learning Story for the first half of the period and the Central Bank Learning Story in the second half of the period.

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Definitions:

Shock

A medical condition involving a sudden drop in blood flow throughout the body, often caused by severe injury or infection.

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel accountable for their actions because the responsibility is perceived to be shared among all group members.

Just-World Hypothesis

The notion that many people need to believe that the world is fair and that justice is served, that bad people are punished and good people are rewarded.

Deindividuation

In groups or crowds, the loss of awareness of one’s own individuality.