Question: A way for policymakers to avoid the problems that deflation can present and still meet their objective of price stability is to: A keep the

A way for policymakers to avoid the problems that deflation can present and still meet their objective of price stability is to:

A

keep the monetary base fixed.
B

set a target of zero inflation.
C

target a nominal interest rate of zero.
D

set an inflation target of two to three percent.

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