Which of the following statements about inflation targeting is true?
A) Inflation targeting by the central banks in other countries has not typically lowered inflation.
B) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals.
C) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.
D) 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.
Answer: D
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A natural experiment is an empirical study:
A) in which the predictions of the model are not required to be tested with data. B) in which some process, outside the control of the experimenter, has assigned subjects to control and treatment groups in a random or nearly random way. C) in which the researcher assigns subjects to control and treatment groups to verify a cause-effect relationshi
According to the World Bank and the International Monetary Fund, which of the following countries has shown the greatest rate of economic growth in the past two decades?
A) China B) Germany C) United States D) Mexico