Which of the Following Is Not an Element of Inflation

question 15

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:

Seasonal Effect

A periodic effect that recurs or fluctuates in a predictable pattern over a year due to the change in seasons.

Time Series

A sequence of data points collected or recorded at successive time intervals, often analyzed to identify trends, cycles, and forecasts.

Moving Average Model

A statistical model used for forecasting future values based on past averages of data points.

Three-period Moving Average

A method of smoothing time series data by calculating the average of three consecutive values at a time.