Targeting a range of inflation rates, instead of a single inflation level, would:

Question

Quizplus · Accepted Answer

Targeting a range of inflation rates instead of a single inflation level would give the central bank some flexibility to adjust monetary policy to meet employment goals while still maintaining price stability. This approach is often referred to as flexible inflation targeting. Congress does not have direct control over monetary policy, so option A and C are incorrect. Option D is also incorrect because targeting a range of inflation rates would give the central bank more flexibility, not less.

Targeting a Range of Inflation Rates, Instead of a Single