In Practice,inflation Targeting Is Better Considered Operating with Constrained Discretion

question 5

Multiple Choice

In practice,inflation targeting is better considered operating with constrained discretion rather than according to a policy rule because central banks with inflation targets typically:

• A) are not allowed to adjust the target in the event of shocks.
• B) set the inflation target as a range rather than as a particular number.
• C) are not held accountable for achieving their target.
• D) must achieve their target regardless of economic conditions.

---

Definitions:

Elbow

A joint that connects the forearm to the upper arm, allowing for a range of movements including bending and straightening.

Closer

Positioned near or nearer to the end of a process, sequence, or lifecycle, often implying a role in concluding or finalizing.

Body Structure

The physical and anatomical makeup of a living organism, including its organs, tissues, and cells.

Cells

The basic structural, functional, and biological units of all living organisms, serving as the building blocks of life.