One concern of those who oppose the central bank targeting inflation at zero is that reducing inflation is costly. What is the cost of reducing the inflation rate?

A horizontal merger is a merger between firms

A) earning roughly the same amount of profit. B) producing roughly the same products. C) regularly doing business of any sort with each other. D) standing in a supplier-purchaser relationship. E) that were previously independent.

Which of the following encourage(s) entrepreneurs to innovate?

a. the patent system b. the enforcement of contracts by the courts c. private property rights d. All of the above are correct.