Equities is to ________ as bond is to ________. A) ownership; ...

[dbose]

Equities is to ________ as bond is to ________.
 
  A) ownership; debt
  B) fairness; constraint
  C) stock; asset
  D) banks; exchanges

Question 2

How is inflation targeting consistent with the dual mandate of price stability and maximum employment?
 
  What will be an ideal response?

[nital]

Answer to Question 1

A

Answer to Question 2

Inflation targeting is based on targets defined over a long-enough time period so that policy can respond flexibly to avoid high unemployment. Credible commitment to an inflation target, also, supports policy flexibility, so that expansionary policies may be pursued as needed, without causing an increase in expected inflation. Nothing is more crucial to maintaining low unemployment than effective management of expected inflation.

[dbose]

Thank you

[nital]

No problemo