Inflation targets are usually specified as
A) deviations from the inflation rate.
B) a specific inflation rate target, for example, 1 percent.
C) a range for the inflation rate.
D) the short- term interest rate rate minus 2 percent.

Question

Quizplus · Accepted Answer

Inflation targets are usually specified as a range for the inflation rate, rather than a specific rate or deviation from a rate. This allows for some flexibility in monetary policy and acknowledges that some level of inflation may be necessary for a healthy economy.

Inflation Targets Are Usually Specified as