All of the Following Arguments Are Made Against Inflation Targeting

question 87

Multiple Choice

All of the following arguments are made against inflation targeting EXCEPT

• A)rigid numerical targets would diminish the flexibility of monetary policy.
• B)the Fed would need to depend on future forecasts of inflation since monetary policy acts with a lag.
• C)the Fed has little influence on inflation.
• D)Holding the Fed accountable for low inflation may make it difficult for elected officials to monitor whether the Fed is supporting good overall economic policy.

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Definitions:

Leadership Styles

The various approaches and methods leaders use to motivate, guide, and manage teams.

Group Decision Making

The process whereby multiple individuals come together to analyze problems, consider solutions, and agree on a course of action.

Transformational Leaders

Individuals who inspire and motivate followers to achieve extraordinary outcomes by transforming their beliefs and values.

Transactional Leaders

Leaders who focus on the exchanges between themselves and their followers, using rewards and punishments to achieve organizational goals.