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) There is simplicity and clarity of the target.
• B) Inflation targeting does not rely on a stable money-inflation relationship.
• C) There is an immediate signal on the achievement of the target.
• D) Inflation targeting reduces the effects of inflation shocks.

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Definitions:

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment.

Stationary Sources

Fixed sites or facilities that emit pollutants into the air, such as power plants, manufacturing facilities, and refineries.

Emission Reduction

The process of lessening the quantity of pollutants released into the atmosphere, often to combat environmental issues like climate change.

NPDES

National Pollutant Discharge Elimination System, a regulatory program in the United States that issues permits for the discharge of pollutants into waters of the United States.