Which of the Following Is a Disadvantage of Inflation Targeting?​

question 45

Multiple Choice

Which of the following is a disadvantage of inflation targeting?​

• A)​It reduces the flexibility of the central bank.
• B)​It makes the goals of the central bank explicit.
• C)​It leads to the problem of time inconsistency.
• D)​It raises the expected inflation rate.

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Definitions:

Political Identification

An individual’s affiliation with a particular political party or stance often shaped by personal beliefs, values, and social influences.

Liberals

Individuals or groups advocating for policies that emphasize individual rights, equality, and support for social programs aimed at reducing inequality and promoting social justice.

Conservatives

A political and social philosophy that emphasizes retaining traditional social institutions and values.

Political Ideology

A set of ethical ideals, principles, doctrines, myths, or symbols of a social movement, institution, class, or large group that explains how society should work, and offers some political and cultural blueprint for a certain social order.