Inflation targeting includes ________.
A) a public announcement of medium-term targets for inflation
B) an institutional commitment to price stability as the primary long run goal
C) an information-inclusive approach in which many variables are used in making decisions about monetary policy
D) all of the above
Correct Answer:
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Q1: The natural rate of unemployment _.
A) is
Q2: Interest rate stability is desirable because _.
A)
Q3: The nominal anchor _.
A) acts like behavioural
Q4: Increases in interest rates _.
A) cause large
Q6: High unemployment _.
A) results in lower GDP
B)
Q7: New Zealand adopted inflation targeting in _.
A)
Q8: The importance of a nominal anchor is
Q9: Price stability is often the primary goal
Q10: The natural rate of output is also
Q11: Concerns about a dual mandate include _.
A)
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