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Business, 05.12.2019 17:31 EnzoF17

Which of the following is true regarding the target inflation rate? instructions: you may select more than one answer. a. a positive target inflation rate increases the likelihood that firms will need to reduce nominal wages when the demand for labor falls. b. a positive target inflation rate is preferred because the country will be able to better avoid a liquidity trap. c. a positive target inflation rate increases the risk of deflation. d. a target inflation rate of zero is a good policy because this will keep prices stable.

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