All of the Following Arguments Are Presented in Favor of Inflation

question 44

Multiple Choice

All of the following arguments are presented in favor of inflation targeting EXCEPT

• A)it would draw attention to what the central bank can achieve in practice.
• B)it would provide an anchor for inflationary expectations.
• C)it would promote accountability by providing a yardstick by which policy can be measured.
• D)it would reduce the lags inherent in monetary policy.

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Definitions:

Cycle Time

The total time from the beginning to the end of a process, procedure, or activity, often measured to assess efficiency.

Production Time

The duration taken to manufacture a product, from the beginning of the process to its completion.

Product-oriented Layouts

Product-oriented layouts are designs in manufacturing facilities where equipment and processes are arranged according to the sequence of operations for a particular product.

Work-in-process Inventories

Goods partially finished in the manufacturing process; this inventory is not ready for sale and is considered an asset on the balance sheet.