Which of the Following Statements Is True About the RBA's

question 2

Multiple Choice

Which of the following statements is true about the RBA's inflation target?

• A) The RBA has a zero inflation target.
• B) The RBA has an explicit target of 2- 3 percent inflation over the course of the business cycle.
• C) The RBA has an explicit upper bound of 3 percent inflation at all times.
• D) The RBA has a crawling inflation target.
• E) The RBA has an implicit target for inflation, that is not revealed to the general public.

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Definitions:

Continental Collision

The process whereby two continental plates collide, leading to mountain building and seismic activity.

Subduction

The process by which one tectonic plate moves beneath another plate and sinks into the mantle due to gravitational forces.

Conduction

The process by which heat or electricity is directly transmitted through a substance when there is a difference of temperature or electrical potential.

Subduction Zone

A region where one tectonic plate moves under another, leading to volcanic activity and earthquakes.