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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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by practicing ethical, sustainable, and community-friendly actions.

Government Intervention

Actions taken by a government to affect or interfere with the economic or social activities in a country, often to correct market failures.

Socially Responsible

Socially responsible describes entities that act in ways that benefit society at large, including ethical behavior, environmental sustainability, and community support.

Government Mandated

Requirements or regulations imposed by a governmental authority that businesses or individuals must comply with.