According to the Reserve Bank of Australia, inflation targeting refers to monetary policy that aims to:
A)achieve a particular annual rate of inflation on average over the business cycle.
B)achieve the same low rate of inflation every year.
C)control the money supply to achieve a target rate of inflation.
D)control the money supply to achieve a target rate of interest that will ensure a low rate of inflation.

Question

Quizplus · Accepted Answer

Inflation targeting refers to monetary policy that aims to achieve a particular annual rate of inflation on average over the business cycle. The target rate of inflation is typically set by a central bank, such as the Reserve Bank of Australia, and the bank adjusts its monetary policy to try to maintain the inflation rate close to the target. The goal is to keep inflation stable and predictable, while also supporting economic growth and employment.

According to the Reserve Bank of Australia, Inflation Targeting Refers