Which of the Following Is Not an Argument Against Inflation

question 58

Multiple Choice

Which of the following is not an argument against inflation targeting?

• A)Inflation targeting reduces the flexibility of the central bank to pursue other policy goals.
• B)Inflation targeting assumes that the central bank can accurately forecast future inflation rates.
• C)Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
• D)Inflation targeting holds the central bank accountable for an inflation goal, but may make it less likely the central bank will achieve other goals.

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