Under Inflation Targeting,a Central Bank Must Pursue Policies That

question 106

Multiple Choice

Under inflation targeting,a central bank must pursue policies that

• A) keep the inflation rate at a target value of zero.
• B) keep the inflation rate at some specific target value.
• C) keep the inflation rate within a specific target range.
• D) lower the inflation rate, provided this can be done without raising the unemployment rate above a specified target value.

---

Definitions:

Discounting Positives

A cognitive bias where individuals disregard or minimize positive information, experiences, or attributes about themselves.

Repeated Role-play

The continuous practice of acting out roles in a controlled setting to improve skills, behaviors, or emotional responses.

Perceptual Responses

Reactions or interpretations based on the perception of stimuli, including how individuals see, hear, feel, taste, or smell various inputs.

Modification of Perceptions

The process of changing how one interprets or views situations, events, or stimuli, often to reduce stress or negative emotions.