Which of the Following Is Not an Element of Inflation

question 72

Multiple Choice

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

• A)a public announcement of medium-term numerical targets for inflation
• B)an institutional commitment to price stability as the primary long-run goal
• C)an information-inclusive approach in which only monetary aggregates are used in making decisions about monetary policy
• D)increased accountability of the central bank for attaining its inflation objectives

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Definitions:

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without the use of money as a medium of exchange.

Five Fundamental Questions

Key economic questions addressing what to produce, how to produce, for whom to produce, who owns and controls resources, and how to provide for growth and innovation.

Business Risk

The potential for losses or less-than-expected returns stemming from the operations or environment of a particular company or industry.

Firm's Owners

Individuals or entities that hold ownership rights in a company, gaining profits and bearing losses from its operation.