If a Central Bank Were Required to Target Inflation at Zero,then

question 13

Multiple Choice

If a central bank were required to target inflation at zero,then when there was an unanticipated increase in aggregate supply the central bank

• A)would have to increase the money supply.This would move unemployment closer to the natural rate.
• B)would have to increase the money supply.This would move unemployment further from the natural rate.
• C)would have to decrease the money supply.This would move unemployment closer to the natural rate.
• D)would have to decrease the money supply.This would move unemployment further from the natural rate.

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Definitions:

Pediculosis

The medical term for lice.

UV Radiation

Ultraviolet radiation; a type of energy emitted by the sun and artificial sources, which can cause skin damage, including sunburn and skin cancer.

Melanin

A pigment found in the skin, hair, and eyes of humans and animals, responsible for coloration and protection against UV radiation.

Epidermis

The most superficial layer of the skin.