Which of the Following Is a Disadvantage of Inflation Targeting

question 22

Multiple Choice

Which of the following is a disadvantage 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 a delayed signal on the achievement of the target.
• D) Inflation targeting reduces the effects of inflation shocks.

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Definitions:

Little Albert

The subject of a famous psychology experiment by John B. Watson, demonstrating how emotional responses could be conditioned in humans.

Classical Conditioning

A learning process that pairs a neutral stimulus with a stimulus that elicits a reflexive response until the neutral stimulus alone elicits that response.

Observational Learning

A form of social learning where behaviors are learned by watching and imitating the actions of others.

Conditioned Taste-Aversion

Learning to avoid a food or drink because it has been associated with an illness or negative experience, even after only one exposure.