In Practice,inflation Targeting Is Better Considered Operating with Constrained Discretion

question 5

Multiple Choice

In practice,inflation targeting is better considered operating with constrained discretion rather than according to a policy rule because central banks with inflation targets typically:

• A) are not allowed to adjust the target in the event of shocks.
• B) set the inflation target as a range rather than as a particular number.
• C) are not held accountable for achieving their target.
• D) must achieve their target regardless of economic conditions.

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Definitions:

The Sun

The star at the center of the Solar System, a nearly perfect sphere of hot plasma, providing light and heat to Earth.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide.

Citric Acid Cycle

A set of chemical reactions that aerobic organisms use to transform acetate, obtained from carbohydrates, fats, and proteins, into carbon dioxide, thereby generating energy.

Substrate Level Phosphorylation

A metabolic process where a phosphate group is directly transferred from a substrate to ADP, forming ATP, occurring in glycolysis and the Krebs cycle.