Which of the Following Statements About Inflation Targeting Is True

question 87

Multiple Choice

Which of the following statements about inflation targeting is true?

• A)Inflation targeting allows the central bank to achieve multiple goals like low unemployment and economic growth.
• B)Inflation targeting has not been adopted by the Fed.
• C)A central bank that adopts inflation targeting is intrinsically dependent on fiscal policy.
• D)Inflation targeting decreases the perceived uncertainty derived from the central bank's course of action.
• E)Inflation targeting increases the uncertainty associated with the central bank's course of action.

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Definitions:

Medulla

A part of the brainstem that controls vital functions like heart rate and breathing.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, involved in regulating breathing, sleep, and taste among other functions.

Parietal Cortex

A region of the brain located in the parietal lobe, involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Neurons

Specialized cells in the nervous system that transmit electrical and chemical signals.