Question

which of the following statements about inflation targeting is true? a. inflation targeting by the central...

which of the following statements about inflation targeting is true?
a. inflation targeting by the central bank's in other countries has not typically lowered inflation
b. inflation targeting would not reduce the flexibility of monetary policy to address other policy
c. inflation targeting would not allow the Central Bank the flexibility to take action agaiinflation targeting would make it easier for households and firms to form accurate expectations of future inflation and proven their planning in the efficiency of the economy in the efficiency of the economy.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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.

Inflation focusing on is a financial course of action routine in which a national bank has an unequivocal target inflation rate for the medium term and reports this inflation center to the all inclusive community. The supposition is that the best that cash related methodology can do to help whole deal advancement of the economy is to keep up esteem quality.

Other options are incorrect to the questions asked .

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume that there is a short-run tradeoff between inflation and unemployment, that the central bank desires...
Assume that there is a short-run tradeoff between inflation and unemployment, that the central bank desires both low inflation and low unemployment, and that the central bank uses discretion in conducting monetary policy. Initially, households and firms expect high inflation. Following an announcement by the central bank of a low-inflation policy, households and firms will ______ the central bank's announcement and ______ their expectations of inflation. believe; not change not believe; not change not believe; lower believe; lower
1. Which of the following is not true about firms that operate internationally? They realize lower...
1. Which of the following is not true about firms that operate internationally? They realize lower cost economies from experience effects by serving an expanded global market from a geographically central location, reducing costs of value creation. They realize location economies by dispersing value creation activities to worldwide locations. The market for their domestic products is expanded into international markets. They earn greater return by leveraging valuable skills developed in foreign operations and transferring them to entities on the global...
1.Which of the following about inflation is NOT true? a. With an unexpectedly high inflation rate,...
1.Which of the following about inflation is NOT true? a. With an unexpectedly high inflation rate, retirees get lower pensions. b. A low inflation rate band helps reduce volatility. c. Governments gain from higher inflation rate. d. With an unexpectedly low inflation rate, lenders lose and borrowers win. 2.Which of the following would NOT cause the AD curve to shift to the right? a. The U.S. wants to import more iron ore from Australia. b.Government spending increases. c. The inflation...
Which of the following is not correct? a. Deficits give people the opportunity to consume at...
Which of the following is not correct? a. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so. b. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth. c. The U.S. debt per-person is large compared with average lifetime income. d. Current spending may benefit future generations. A favorable supply shock causes the price level to...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in each case and show on a graph. a)   (……………..) If wages adjust fully to price increases in the long run, fiscal policy will have no effect on output. b)   (...................) A decrease in government spending and an increase in costs lead to a decrease in the price level certainly. c)   (……………..) An earthquake destroyed a small economy. As a result, the government decided to...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes. b. According to Keynesians, fiscal policy is the first line of defense against economic downturns. c. Advocates of sacrifice ration claim that a zero-inflation target imposes only small costs on society. d. Sacrifice ration implies that a credible commitment to reducing inflation can lower the costs of disinflation by inducing a...
1) If the fed was concerned with inflation, it should? a) buy bonds and raise the...
1) If the fed was concerned with inflation, it should? a) buy bonds and raise the discount rate b) sell bonds and raise the discount rate c)sell bonds and lower the discount rate 2) If there are only two countries in the world and one has a trade deficit, the other country must? a) Also have a trade deficit b) Have a trade surplus c) Have trade restrictions in place 3) Goods and Services purchased from foreign sources are known...
q-1 Which of the following statements is true? a With international trade but no government, AE...
q-1 Which of the following statements is true? a With international trade but no government, AE = C + Ig + NX b Negative net exports (due to "large" exports) increase aggregate expenditure beyond what it would be in a closed economy, and thus have an expansionary effect on the economy. "Foreigners are buying more domestic production!". c Positive net exports (due to "large" imports) decrease aggregate expenditure beyond what it would be in a closed economy, and thus have...
Question 21 (1 point) Which of the following statements is true? a To prevent the politicization...
Question 21 (1 point) Which of the following statements is true? a To prevent the politicization of macro policies, most countries have put politically independent central banks in charge of monetary policy. b Regulatory capture happens when a government agency’s regulations and enforcement activities come to be heavily influenced by the industry it is supposed to be regulating. c Political corruption is the unlawful misdirection of governmental resources that occurs when governmental officials abuse their entrusted powers for personal gain....
Can I have your opinion on this research and possible correction? The global economy and government’s...
Can I have your opinion on this research and possible correction? The global economy and government’s ability to control its country’s currency. Definition of terms Global economy is an economic interdependence established between the most influential countries that drives the worldwide economic environment. It is also the aggregate economic output, movement and influence of all countries. (My Accounting course). Currency is the medium of exchange for goods and services. In short, its money, in the form of paper or coins,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT