Which of the Following Is Not an Advantage of Inflation

question 56

Multiple Choice

Which of the following is not an advantage of inflation targeting?

• A)reduction of the time-inconsistency problem
• B)increased monetary policy transparency
• C)There is an immediate signal on the achievement of the target.
• D)consistency with democratic principles

---

Definitions:

Unionization

The process by which workers form or join a union, a collective organization that represents them in negotiations with employers over wages, benefits, and working conditions.

Productivity

Measures the efficiency of production in terms of the output produced per unit of input.

Profit Margins

An indicator of a company's financial health, calculated as the difference between revenue and expenses in relation to revenue.

Employee Benefits

Compensation in forms other than cash.