Question

“If autonomous spending falls, the central bank should lower its inflation target in order to stabilize inflation.” Is this statement true, false, or uncertain? Explain your answer

Short answer

The statement is false because the financial organisation is the autonomous body and might take corrective actions to stabilize the condition of the economy.

Step-by-step solution

Concept Introduction  

Inflation is the continuous increase in the prices associated with goods and services within an economy during a selected period of your time.

Explanation of Solution 

The statement is fake because the financial organisation is the autonomous body and might take corrective actions to stabilize the condition of the economy. this example may be easily handled by the employment of a stabilization policy which is in a position to stabilize both inflation and output within the economy easily.