A Policymaker Wants to Reduce Inflation

question 10

Multiple Choice

A policymaker wants to reduce inflation. In order to make an intelligent decision about how to do so, the policymaker:

• A) should use a simple rule: once inflation is gone, it will always be gone.
• B) needs to know the causes of inflation, for example, the government's printing of too much money.
• C) should find out if people are really better off as a result of the inflation.
• D) should realize that inflation can be reduced without any costs.

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