Solved

One Criticism of the Reserve Bank of Australia's Focus on an Inflation

Question 73

Multiple Choice

One criticism of the Reserve Bank of Australia's focus on an inflation target is that


A) if inflation edges above the target range, the Bank decreases aggregate demand and could create a recession.
B) if inflation falls below the target range a recession will result.
C) it makes setting expectations of inflation difficult.
D) the Reserve Bank of Australia pays too much attention to unemployment and real GDP growth and not enough to inflation control.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents