An inflation _____ may be more likely to stabilize output as well as inflation because they have established credibility and _____.
A)dove; lowered the core rate of inflation
B)hawk; reduced inside lags
C)dove: anchored inflationary expectations
D)hawk; anchored inflationary expectations

Question

Quizplus · Accepted Answer

An inflation hawk is more likely to stabilize output and inflation because they have established credibility and anchored inflationary expectations, which helps in maintaining stable economic conditions.

An Inflation _____ May Be More Likely to Stabilize Output