Which of the following is NOT a disadvantage to inflation targeting?
A) There is a delayed signal about achievement of the target.
B) Inflation targets could impose a rigid rule on policymakers.
C) There is potential for larger output fluctuations.
D) There is a lack of transparency.
D
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An increase in the price level in Japan relative to the price level in the United States will shift the demand curve for dollars leftward and the dollar depreciates or becomes weaker
a. True b. False Indicate whether the statement is true or false
The average number of times each dollar is used per year to buy goods and services in the economy is called the
A. velocity of circulation. B. equation of exchange. C. law of demand. D. law of diminishing returns.
Which of the following would be true if all the national debt were owned internally?
A. The federal government would not need to refinance the national debt. B. The federal government would not need to worry about raising taxes to pay interest on the national debt. C. We would still be concerned about the effect on the distribution of income from interest payments on the national debt. D. Budget surpluses would be more likely than budget deficits.
Billy developed an economic model to describe the behavior of a stock market index. His model predicts that the index increases on Mondays and declines on the other days of the week. What can be said about Billy's model?
A) The model's predictions are ambiguous and cannot be tested. B) The model's predictions are not ambiguous and cannot be tested. C) The model's predictions are ambiguous and can be tested. D) The model's predictions are not ambiguous and can be tested.