The inflation target is _____
A) the commitment of central bankers to keep inflation below a certain rate for the next year or two.
B) the commitment of central bankers to keep money growth at a certain rate for the next year or two.
C) the commitment of central bankers to keep output at a certain rate for the next year or two.
D) the commitment of central bankers to keep unemployment at a certain rate for the next year or two.
E) the commitment of central bankers to keep fiscal spending at a certain rate for the next year or two.

Question

Quizplus · Accepted Answer

The inflation target is the commitment of central bankers to keep inflation below a certain rate for the next year or two. This is typically a target rate of inflation, such as 2% or 3%, that central banks aim to achieve through their monetary policy decisions. The goal is to maintain stable prices and avoid the negative effects of both high and low inflation on the economy.

The Inflation Target Is _____