An increase in the target inflation rate by the central bank is referred to as
A)disinflation.
B)deflation.
C)reinflation.
D)accommodation.
E)stagflation.

Question

Quizplus · Accepted Answer

An increase in the target inflation rate by the central bank is referred to as "reinflation," as it involves increasing the inflation rate to a higher level. Disinflation is the process of reducing the rate of inflation, while deflation refers to a decrease in the general price level of goods and services. Accommodation refers to the central bank's policy of adjusting interest rates in response to changes in the economy. Stagflation is a situation where there is stagnant economic growth, high unemployment, and high inflation.

An Increase in the Target Inflation Rate by the Central