As It Is Usually Practiced, Inflation Targeting Sets

question 63

Multiple Choice

As it is usually practiced, inflation targeting sets

• A)a specific inflation rate for the central bank to target and prohibits it from deviating from the target even when some shock pushes inflation away from that number.
• B)a specific inflation rate for the central bank to target but allows it to deviate from the target when some shock pushes inflation away from that number.
• C)sets some range of inflation rates for the central bank to target but prohibits it from deviating from that range even when some shock pushes inflation outside the range.
• D)sets some range of inflation rates for the central bank to target but allows it to deviate from that range even when some shock pushes inflation outside the range.

---

Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the central peak, and the probabilities of extreme variations taper off equally on both sides.

Intelligence Test Scores

Intelligence test scores are quantitative measures assessing an individual's cognitive abilities and potential compared to a normative population.

Bell-Shaped Pattern

A graphical representation of data that resembles the shape of a bell, typically illustrating a normal distribution in statistical analyses.

Stanford-Binet

An intelligence test that assesses cognitive abilities and IQ, originally developed by Alfred Binet and later revised at Stanford University.