When a central bank targets inflation, its inflation targets are usually specified as
A) a range for the inflation rate.
B) a specific inflation rate target, for example, 1 percent.
C) deviations from the inflation rate.
D) a point on the short-run Phillips curve.
E) the short-term interest rate rate minus 2 percent.

Question

Quizplus · Accepted Answer

Central banks often specify inflation targets as a range to allow for flexibility in response to economic fluctuations and uncertainties.

When a Central Bank Targets Inflation, Its Inflation Targets Are