Which of the Following Statements About Inflation Targeting Is True

question 203

Multiple Choice

Which of the following statements about inflation targeting is true?

• A)Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.
• B)Inflation targeting has been adopted by the central banks of fewer than five countries.
• C)With changes in leadership over time at the Bank of Canada, inflation targeting could help institutionalize good Canadian monetary policy.
• D)Inflation targeting is practiced strongly in Canada but is ignored in Europe.
• E)Inflation targeting prevents central banks from changing the money supply.

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Definitions:

Audit Unit

A specific department or team within an organization responsible for evaluating the accuracy of financial records and operations.

Customer Service

encompasses the support and advice provided by a company to those people who buy or use its products or services.

Synergy

The cooperation or interplay between two or more entities, materials, or forces, resulting in a combined outcome that surpasses the total effects of each one operating independently.

Out Of The Box

Thinking or ideas that are creative and unconventional, not limited by existing norms or perceptions.