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A Policy of Inflation Targeting Generally Involves Targeting the Future

Question 47

Multiple Choice

A policy of inflation targeting generally involves targeting the future rate of inflation because


A) monetary policy changes made today will take time to have an effect on the economy.
B) monetary policy involves changing interest rates and interest is paid annually.
C) economists are only ever interested in the future.
D) workers and their unions consider future inflation in their negotiations with employers.

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