An Economist Advising a Central Bank Intending to Reduce the Inflation

question 33

Multiple Choice

An economist advising a central bank intending to reduce the inflation rate would likely point out that

• A)the costs of reducing inflation persist and the costs of reducing it do not depend on the public's inflation expectations.
• B)the costs of reducing inflation persist,but they are smaller if the public reduces its inflation expectations.
• C)the costs of reducing inflation are temporary and the costs of reducing it do not depend on the public's inflation expectations.
• D)the costs of reducing inflation are temporary and the costs are smaller if the public reduces its inflation expectations.

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Being in a state where one experiences comfort, healthiness, or happiness.

Racial

Pertaining to race, which encompasses classifications of humans based on physical and genetic characteristics.

Ethnic Minority

A group of people who differ in race or ethnicity from the majority population of a country or region. They may have different cultural, linguistic, or religious characteristics.

Sexual Orientation

A term that refers to whether someone is sexually attracted to others of the same sex, different sex, or both.