All of the Following Arguments Are Presented in Favor of Inflation

question 44

Multiple Choice

All of the following arguments are presented in favor of inflation targeting EXCEPT

• A)it would draw attention to what the central bank can achieve in practice.
• B)it would provide an anchor for inflationary expectations.
• C)it would promote accountability by providing a yardstick by which policy can be measured.
• D)it would reduce the lags inherent in monetary policy.

---

Definitions:

Amniotic Fluid

The protective liquid contained within the amniotic sac of a pregnant female, surrounding and cushioning the fetus during development.

Maternal Wastes

Biological and chemical substances eliminated by the mother's body, often referred to in the context of pregnancy and its impact on fetal development.

Fertilized Egg

The cell resulting from the union of a sperm and an ovum, marking the beginning of a new organism's development.

Embryonic Period

The period of prenatal development that occurs two to eight weeks after conception. During the embryonic period, the rate of cell differentiation intensifies, support systems for the cells form, and organs appear.