Which of the following statements about inflation targeting is true?
A) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals.
B) Inflation targeting by the central banks in other countries has not typically lowered inflation.
C) Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy.
D) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.
C
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What will be an ideal response?
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. Consider whether the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it is justification for you producing it in-house
Can positive economic profits persist under monopolistic competition in the long run. Why?
The Fed first announced an inflation target of 2% in
A. 2015. B. 2012. C. 2005. D. 1979.