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.
b
You might also like to view...
Which of the following best describes the short-run supply curve for an individual perfectly competitive firm?
A) It is the firm's marginal cost curve. B) It is the upward-sloping part of the firm's marginal cost curve. C) It is the vertical axis at prices less than minimum average variable cost and is the firm's marginal cost curve at prices above minimum average variable cost. D) It is the vertical axis at prices less than minimum average total cost and is the firm's marginal cost curve at prices above minimum average total cost.
What economist in the early 20th century refined the use of the equation of exchange?
A) Jean-Baptiste Say B) Irving Fisher C) Thomas Malthus D) Adam Smith
There are a number of reasons why labor supply curves will shift in a particular industry. Which one of the following is NOT one of them?
A) Changes in working conditions in an industry affect the labor supply curve. B) job flexibility that determines the position of the labor supply curve C) There is a change in the market wage rate. D) Taxes on labor affect the labor supply curve.
The Clayton Act allowed board members of one corporation to sit on the board of a competing firm as long as inside information was not transmitted
a. True b. False Indicate whether the statement is true or false