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:

Living Standards

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Industrial Democracy

A form of organizational governance in which workers have a direct or representative role in decision-making processes.

Productivity

A measure of the efficiency of production, often quantified as the rate of output per unit of input.

Efficiency

The effectiveness of producing desired outcomes with a minimum amount of waste, effort, or expense, often evaluated in processes, systems, or machines.