An Economist Would Be More Likely to Argue Against Reducing

question 26

Multiple Choice

An economist would be more likely to argue against reducing inflation if she thought that

• A)the central bank lacked credibility and if bonds were usually not indexed for inflation.
• B)the central bank lacked credibility and if bonds were usually indexed for inflation.
• C)the central bank had credibility and if bonds were usually not indexed for inflation.
• D)the central bank had credibility and if bonds were usually indexed for inflation.

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Definitions:

Employment At Will

A contractual relationship where an employee can be dismissed by an employer for any reason that is not illegal and without having to establish "just cause" for termination.

Express Contract

A legally binding agreement where the terms are stated clearly by the parties involved, either orally or in writing.

Disclosure

The act of making previously private or confidential information known to others.

General Public

The broad group of people in society who do not have a specific interest in particular topics or areas but are affected by or interested in general issues.