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:

Variable Interest Rate

An interest rate that can fluctuate over time based on underlying benchmarks or indices, affecting the cost of borrowing or the yield on savings.

APR

Annual Percentage Rate, the yearly interest charge for borrowing, expressed as a percentage of the principal loan amount.

Truth in Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Home Equity Plan

A financial arrangement allowing homeowners to borrow against the equity of their home, typically through a line of credit or a loan.