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Having a Nominal Inflation Target for Monetary Growth Can Pose

Question 97

Multiple Choice

Having a nominal inflation target for monetary growth can pose a difficulty because:


A) inflation is very challenging to measure.
B) inflation can be higher or lower, depending on the growth rate of real GDP.
C) most agree that inflation targets are completely unrelated to monetary growth.
D) monetary growth can be affected by political pressure and other noneconomic factors.

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