Which of the Following Is an Advantage to Inflation Targeting

question 67

Multiple Choice

Which of the following is an advantage to inflation targeting?

• A) There is a delayed signal about achievement of the target.
• B) Inflation targets could impose a rigid rule on policymakers.
• C) There is potential for larger output fluctuations.
• D) It is easily understood by the public.

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Definitions:

Honor

The quality of being honest and having strong moral principles; a sense of moral uprightness.

Consumer Nondurable

Goods that are immediately consumed or have a lifespan of less than three years, such as food and clothing.

Medical Care

Professional services provided by individuals or institutions to individuals for the purpose of maintaining, improving, or managing health.

Gasoline and Oil

Refers to petroleum-based liquid mixtures primarily used as primary fuels in vehicles and industrial machines.