All of the following arguments are presented in favor of inflation targeting EXCEPT
A) it would draw attention to what the central bank can achieve in practice.
B) it would provide an anchor for inflationary expectations.
C) it would promote accountability by providing a yardstick by which policy can be measured.
D) it would reduce the lags inherent in monetary policy.
D
You might also like to view...
The total of all planned production for the entire economy is known as
A) aggregate inflation. B) aggregate supply. C) aggregate expenditures. D) aggregate demand.
Which of the following defines monopolization?
A) the Securities and Exchange Commission B) the Federal Reserve C) U.S. Supreme Court D) Federal Trade Commission Act
Financial intermediaries are institutions that
A) produce money for the federal government. B) regulate the activities of stock and bond markets. C) act as middlemen in the process of directing funds from savers to investors. D) oversee the activities of government institutions such as the Federal Reserve.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.