Which of the Following Is Not an Argument Against Inflation

question 213

Multiple Choice

Which of the following is not an argument against inflation targeting?

• A)Inflation targeting reduces the flexibility of a central bank to pursue other policy goals.
• B)Inflation targeting assumes that a central bank can accurately forecast future inflation rates.
• C)Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
• D)Inflation targeting holds a central bank accountable for an inflation goal, but may make it less likely a central bank will achieve other goals.

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Definitions:

Cyclic AMP

A second messenger important in many biological processes, derived from adenosine triphosphate (ATP) and used for intracellular signal transduction.

Phosphorylation

The addition of a phosphate group to a molecule, a crucial process in biology that modulates the function of proteins and other molecules in cells.

Excitatory Postsynaptic Potential

A temporary increase in postsynaptic membrane potential due to the flow of positively charged ions into the postsynaptic cell, making it more likely to fire an action potential.

Depolarization

The reduction in the electrical charge difference across a cell's plasma membrane, leading to the initiation of an action potential.