Which of the Following Is a Disadvantage to Monetary Targeting

question 81

Multiple Choice

Which of the following is a disadvantage to monetary targeting?

• A)It relies on a stable money-inflation relationship.
• B)There is a delayed signal about the achievement of a target.
• C)It implies larger output fluctuations.
• D)It implies a lack of transparency.

---

Definitions:

Self-Efficacy Theory

The belief in one's own ability to succeed in specific situations or accomplish a task, playing a crucial role in determining how goals are set and achieved.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.

Competence

The ability of an individual or organization to perform a task effectively, with the required skills and knowledge.

Goal-Setting Theory

A psychological theory that suggests specific and challenging goals along with appropriate feedback contribute to higher and better task performance.