ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not an essential feature of inflation targeting?
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The public announcement of quantitative inflation targets.
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The recognition that the primary aim of the central bank is to ensure rapid economic growth.
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A broad based approach to the analysis of inflation.
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A high degree of transparency
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Explanation:
Detailed explanation-1: -Which of the following is not an essential element of inflation targeting? allowing short-run deviations in inflation from target to better promote output stability.
Detailed explanation-2: -Which of the following statements about inflation targeting is true? Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy.
Detailed explanation-3: -Generally, central banks have set their target at 2% to 3% annual inflation.
There is 1 question to complete.