Nominal GDP targeting ________.
A)is consistent with a dual mandate
B)has been adopted in more countries than have adopted inflation targeting
C)is,compared to inflation targeting,easier both to implement and to explain
D)is preferred strongly by "conservative" central bankers

Question

Quizplus · Accepted Answer

Nominal GDP targeting is consistent with a dual mandate because it focuses on both inflation and real GDP growth, aligning with objectives to control inflation and promote economic growth simultaneously. Other options are incorrect: it has not been adopted more widely than inflation targeting, it is not necessarily easier to implement or explain compared to inflation targeting, and it is not specifically preferred by conservative central bankers, who might lean more towards inflation targeting for its focus on price stability.

Nominal GDP Targeting ________