Label each of the following statements true, false, or uncertain. Explain briefly.

a. The most important argument in favor of a positive rate of inflation in OECD countries is seignorage.

b. Fighting inflation should be the Fed's only purpose.

c. Inflation and money growth moved together from 1970 to 2009.

d. Because most people have little trouble distinguishing between nominal and real values, inflation does not distort decision making.

e. Most central banks around the world have an inflation target of \(4 \%\).

f. The higher the inflation rate, the higher the effective tax rate on capital gains.

g. The Taylor rule describes how central banks adjust the policy interest rate across recessions and booms.

h. The zero lower bound on the nominal policy rate was expected to be a regular feature of monetary policy when inflation targeting began.

i. The Federal Reserve pays interest on reserves held by member banks.

j. Quantitative easing refers to central bank purchases of assets with the intention of directly affecting the yield on these assets.

k. In the crisis, central banks provided liquidity to financial institutions they did not regulate.

l. One consequence of the crisis was higher capital requirements and a more extensive regulatory regime for banks.