In the Countries That Have Adopted Inflation Targeting,the Inflation Rate

question 32

Multiple Choice

In the countries that have adopted inflation targeting,the inflation rate has typically

• A)increased.
• B)decreased.
• C)decreased to zero.
• D)not changed.

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Definitions:

Negative Externalities

Costs suffered by a third party as a result of an economic transaction that they were not directly involved in.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, typically resulting from increased production where the cost per unit of output drops as scale increases.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all and one person's use does not diminish another's.

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both the private costs and any external costs.