Which of the Following Is Disadvantage of Inflation Targeting

question 80

Multiple Choice

Which of the following is disadvantage of inflation targeting?

• A) There is simplicity and clarity of the target.
• B) Inflation targeting does not rely on a stable money-inflation relationship.
• C) It may lead to larger output fluctuations.
• D) Inflation targeting reduces the effects of inflation shocks.

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Definitions:

Performance Obligation

A promise in a contract to transfer a good or service to a customer, which is a fundamental concept in revenue recognition.

Non-distinct

Describes goods, services, or attributes that are not clearly separate or distinguishable from each other.

Separately Identifiable

A condition where an asset or component can be distinguished and divided from the whole, based on its unique characteristics and contributions to the operation.