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 statements is correct?
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Inflation targeting is based on the assumption that all elements of the inflation process are under control of the central bank.
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Under an inflation-targeting framework there is no limit to the discretionary powers of the central bank.
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Inflation targeting will only work if there is a strong and stable relationship between changes in the money stock and inflation.
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One of the key aspects of inflation targeting is the impact on inflation expectations.
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Explanation:
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