Which of the Following Is an Advantage to Inflation Targeting

question 90

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 increases accountability of the central bank.

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Definitions:

Congruence

Congruence relates to the degree of agreement, harmony, or similarity between individual desires, values, or interests and external realities or expectations.

Organization's Members

Individuals who belong to and are actively involved in a particular organization, contributing to its activities and goals.

Congruence

Indicates a state of agreement, harmony, or compatibility between two or more aspects, such as values and actions.

Upward Communication

This refers to the process in which information flows from the lower levels of a hierarchy to the upper levels in an organization.