Which of the Following Is True of Inflation Targeting

question 24

Multiple Choice

Which of the following is true of inflation targeting?

• A) it is conducted with openness rather than secrecy
• B) it is a specific policy rule
• C) it restricts policymakers' attention to one easily identified variable
• D) it is a form of monetarism which relies on a relatively narrow interpretation of the Quantity Theory
• E) though theoretically legitimate, it has not been adopted in practice by any major central banks

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