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lisov135 [29]
3 years ago
13

Which of the scenarios best reflects the meaning of the term inflation targeting? a) In anticipation of the upcoming election, t

he chairman of the Federal Reserve lowers interest rates, hoping to win support for the incumbent president. b) A central bank is expected to achieve a 3% annual inflation rate. c) Hoping to reduce inflation to improve public opinion, the Federal Reserve decides to lower interest rates. d) A local shopping mall offers an "inflation discount," which compensates for the recent increase in prices, in the hopes of targeting savvy consumers.
Business
1 answer:
zvonat [6]3 years ago
5 0

Answer:

b) A central bank is expected to achieve a 3% annual inflation rate

Explanation:

Inflation targeting is a type of monetary policy where the central bank of a country sets an inflation rate as its goal or target.

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Further Explanation:

Rent-seeking behavior can best be described a person lobbying for a particular business or person. Many times a politician is bribed to give a that business certain legislature rules/laws in favor for that company.

If logrolling is permissible, the rent seeking may be successful. Many times the this produces results that are not favorable to the public and can even be harmful. It really helps to understand the government policies when a person understands rent-seeking behavior.

Some ways a government may fail is;

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