Which of the following happened as a result of inflation targeting in New Zealand ?
A)It made the goals of the central bank explicit.
B)It led to a higher expected inflation rate.
C)It increased the inflation rate in the country.
D)It lowered the credibility of the central bank.

Question

​Which of the following happened as a result of inflation targeting in New Zealand ?
A)​It made the goals of the central bank explicit.
B)​It led to a higher expected inflation rate.
C)It increased the inflation rate in the country.
D)​It lowered the credibility of the central bank.

Quizplus · Accepted Answer

Inflation targeting made the goals of the central bank explicit, which means that the central bank's objectives and the measures taken to achieve those objectives became more transparent and easily understandable to the public. This increased accountability and credibility of the central bank. B is incorrect as inflation targeting aims to keep inflation within a certain target range, not increase it. C and D are also incorrect as inflation targeting aims to lower inflation and increase the credibility of the central bank.

​Which of the Following Happened as a Result of Inflation

Which of the Following Happened as a Result of Inflation