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

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Definitions:

Population Standard Deviation

The measure of variability that encompasses all the values in a given population.

Point Estimate

A single value (or point) that serves as the best guess or best estimate of a population parameter (like the mean or proportion).

Point Estimate

A single value or statistic used to estimate a population parameter.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of items or cases that fall within a certain category or exhibit a particular attribute.