Which of the following is NOT an element of inflation targeting?
A) a public announcement of medium-term numerical targets for inflation
B) an institutional commitment to price stability as the primary long-run goal
C) an information-inclusive approach in which only monetary aggregates are used in making decisions about monetary policy
D) increased accountability of the central bank for attaining its inflation objectives
C
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Trade barriers are politically popular because
A) they are a way to avoid trade wars and still protect domestic producers. B) people recognize their use as a negotiating tool in international relations. C) their benefits are widespread, while their costs are highly concentrated. D) their benefits are concentrated, while their costs are widespread.
The amount of U.S. exports to the rest of the world is primarily determined by _____
a. the real disposable income in the United States b. the real disposable income in other nations c. the real interest rate in other nations d. the real interest rate in the United States e. the government budget deficits in other nations
A statement of opinion about which policy is best for America is
a. an abstraction b. a positive statement c. a normative statement d. a philosophical conundrum e. empirically verifiable
Deficits and debt are often measured relative to GDP because:
A. the growth in GDP depends on the debt. B. the government's ability to repay the debt depends on GDP. C. this method always makes them appear smaller. D. this method always makes them appear larger.