Central banks that practice flexible inflation targeting are ____ than central banks that practice strict inflation targeting.
A)more likely to adjust policy in response to output gaps
B)less likely to adjust policy in response to output gaps
C)more concerned with inside lags in macroeconomic policy
D)less concerned with inside lags macroeconomic policy

Question

Quizplus · Accepted Answer

Flexible inflation targeting allows central banks to consider other economic factors, such as output gaps, in addition to inflation, making them more likely to adjust policy in response to these gaps compared to strict inflation targeting.

Central Banks That Practice Flexible Inflation Targeting Are ____ Than