In inflation targeting, the range that represents the goal for the inflation rate is known as the
A)target band.
B)optimal range.
C)central tendency.
D)ultimate goal.

Question

Quizplus · Accepted Answer

The range that represents the goal for the inflation rate in inflation targeting is known as the target band. This range typically consists of a lower and upper bound within which the central bank aims to keep inflation. The target band is established based on the goals and objectives of the central bank, as well as the prevailing economic conditions and other relevant factors.

In Inflation Targeting, the Range That Represents the Goal for the Inflation