Critics of Inflation Targeting Argue That _____

question 66

Multiple Choice

Critics of inflation targeting argue that _____.

• A)it can lead to lower aggregate supply in the long run
• B)forecasting future inflation may be inaccurate, leading to inefficiency
• C)governments are too flexible with inflation target rates and need to be more tight
• D)targeting inflation may cause net exports to fall in the long run
• E)the government can run into a deficit as a result of targeting inflation

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Definitions:

Iris

The colored part of the eye that controls the diameter and size of the pupil, thus regulating the amount of light that enters the eye.

Pupil

The opening in the center of the iris of the eye that adjusts size to control the amount of light reaching the retina.

Protective Covering

A layer or structure that serves to shield or guard an organism or part of an organism from harm or injury.

Eyeball

The spherical part of the eye that contains the optic structures and is responsible for vision.