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GalinKa [24]
2 years ago
12

After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As

the new assistant economic minister, you are tasked with critiquing this policy. Which criticism of the 0% inflation target is best supported by the economic literature
Business
1 answer:
s2008m [1.1K]2 years ago
6 0

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

#SPJ12

You might be interested in
ClipClop Company sells horseshoes to customers at a discount of 4% if the customer orders more than 10,000 horseshoes in a year.
STALIN [3.7K]

Answer:

$7,680

Explanation:

The computation of the sales revenue in April month is shown  below:

= Sales revenue - discount

where,

Sales revenue = Number of horseshoes × price per shoe

                       = 4,000 horseshoes × $2

                       = $8,000

And, the discount equal to

= Sales revenue × discount percentage

= 8,000 horseshoes × 2%

= 3$20

Now put these values to the above formula

So, the value would be equal to

= $8,000 - $320

= $7,680

7 0
3 years ago
Which account would you have a debit card linked to?
yulyashka [42]
D) checking account
3 0
3 years ago
Cash in Hand” considered as_____? 1 point Investment Liability Retained Earnings Asset
asambeis [7]

Answer:

Asset

Explanation:

<em>In accounting/investment, cash in hand is generally considered to be an asset.</em>

<u>Cash in hand is considered a liquid asset due to the fact that it can easily be accessed or utilized to settle liabilities or acquire other assets. For example, cash in hand can be used to acquire properties, furniture, electronics, etc all of which are considered assets. </u>

Hence, the correct answer is asset.

8 0
2 years ago
Over the course of its history, Budwiser’s marketing responded to major regulatory and cultural changes, such as Prohibition and
sammy [17]

Answer: Answers to both questions follow in the explanation below.

Explanation: One issue the marketing managers can look at can be abuse of alcohol or underage drinking on university or college campuses.

To address this issue the manager's can respond by introducing low - alcoholic or non -alcoholic alternatives. This can reduce the alcohol consumption by students when they're at social events or even be offered to students who are designated drivers. To further mitigate this issue the managers can advertise responsible drinking by placing them at the bottom of advertisements.

7 0
3 years ago
In the short​ run, the equilibrium market price and market output are determined by​ _______.
OleMash [197]
<span>Short-run market supply and market demand determine the market price and output.

Hope this helps!
</span>
5 0
3 years ago
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