21. Paul Volcker's inflation reduction efforts a. failed to reduce inflation. b. failed to reduce expected inflation. c. resulted in the highest unemployment rate since the Great Depression. d. All of the above are correct. 22. Which of the following concerning inflation reduction efforts in general is not true? a. They are likely to be more credible if the government also takes measures to hold down expenditures. b. They are likely to have a lower cost if people find the central bank's promise credible. c. They have permanent benefits. d. The costs are likely to exceed the benefits. 23. Inflation reduction has the lowest cost when a. the efforts are credible so that the sacrifice ratio is high. b. the efforts are credible so that the sacrifice ratio is low. c. the efforts are unexpected so that the sacrifice ratio is high. d. the efforts are unexpected so that the sacrifice ratio is low. 24. Which of the following could the government do to decrease the costs of inflation without actually necessarily
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