Which of the following statements is false concerning policies to reduce inflation?
A. They are likely to have a lower cost if people think that the central bank is credible.
B. The costs are likely to exceed the benefits.
C. They have permanent benefits.
D. They are likely to be more credible if the government also makes an attempt to reduce the budget deficit.
Answer:B
Which of the following statements is false concerning policies to reduce inflation?
A. They are likely to have a lower cost if people think that the central bank is credible. B. The costs are likely to exceed the benefits. C. They have permanent benefits. D. They are likely to be more credible if the government also makes an attempt to reduce the budget deficit.