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An Economist Would Be More Likely to Argue for Reducing

Question 31

Multiple Choice

An economist would be more likely to argue for reducing inflation if she thought that


A) the central bank lacked credibility and if bonds were usually not indexed for inflation.
B) the central bank lacked credibility and if bonds were usually indexed for inflation.
C) the central bank had credibility and if bonds were usually not indexed for inflation.
D) the central bank had credibility and if bonds were usually indexed for inflation.

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