As It Is Usually Practiced,inflation Targeting Sets

question 6

Multiple Choice

As it is usually practiced,inflation targeting sets

• A)a specific inflation rate for the central bank to target and prohibits it from deviating from the target even when some shock pushes inflation away from that number.
• B)a specific inflation rate for the central bank to target but allows it to deviate from the target when some shock pushes inflation away from that number.
• C)sets some range of inflation rates for the central bank to target and prohibits it from deviating from that range even when some shock pushes inflation outside the range.
• D)sets some range of inflation rates for the central bank to target but allows it to deviate from that range when some shock pushes inflation outside the range.

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