Why should the central bank aim for zero inflation?
A) because reducing inflation imposes temporary costs but provides permanent benefits
B) because reducing inflation from 2 percent to zero is virtually costless
C) because the government has indexed tax brackets to prevent the adverse effects of inflation
D) because the costs of inflation are very high
Correct Answer:
Verified
Q21: Proponents of zero inflation argue that reducing
Q28: Proponents of zero inflation argue that reducing
Q32: A law that requires the money supply
Q34: Which of the following is a significant
Q35: How would a permanent reduction in inflation
Q36: Which of the following could the government
Q38: In which of the following situations is
Q40: Some countries have had high inflation for
Q41: Why are deficits undesirable?
A)They reduce private savings.
B)If
Q51: Which of the following would transfer wealth
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents