Inflation targeting is a framework for carrying out monetary policy whereby
A) the central bank commits to a monetary growth rule.
B) the central bank commits to achieving a publicly announced level of inflation.
C) the central bank commits to achieving a target level of inflation which is never announced publicly.
D) the central bank adopts a rigid target for inflation and ignores declines in output.
B
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The unemployment rate will decrease whenever there is
a. an increase in the number of persons classified as unemployed. b. a decrease in the number of unemployed relative to the size of the labor force. c. a decrease in the size of the population and there is no change in the number of persons classified as employed. d. a reduction in the size of the labor force. e. a decrease in the number of unemployed and the population does not change.
Which of the following represents a consumer's optimum?
a. MUx/MUy = Py/Px b. MUx/Py = MUy/Px c. MUx/Px = MUy/Py d. MUy/MUx = Px/Py