Inflation Targeting Is a Framework for Carrying Out Monetary Policy

question 32

Multiple Choice

Inflation targeting is a framework for carrying out monetary policy whereby

• A)the central bank adopts a rigid target for inflation and ignores declines in output.
• B)the central bank commits to achieving a publicly announced level of inflation.
• C)the central bank commits to achieving a target level of inflation that is never announced publicly.
• D)the central bank commits to a monetary growth rule.
• E)the central bank commits to achieving a level of inflation equal to the rate of real GDP growth.