When a Central Bank Targets Inflation, Its Inflation Targets Are

question 83

Multiple Choice

When a central bank targets inflation, its inflation targets are usually specified as

• A) a range for the inflation rate.
• B) a specific inflation rate target, for example, 1 percent.
• C) deviations from the inflation rate.
• D) a point on the short-run Phillips curve.
• E) the short-term interest rate rate minus 2 percent.

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Definitions:

Premium Rate

The rate charged for an insurance policy, typically a periodic payment based on the level of coverage and risk factors.

Coinsurance Clause

A provision in an insurance policy that requires the insured to bear a portion of the costs of a claim, typically after the deductible has been met.

Premiums

Payments made regularly to an insurance company for coverage, often monthly or yearly.

Coinsurance Clause

A provision in an insurance policy that determines the percentage of the cost a policyholder is responsible for after the deductible is met.