The object of inflation targeting is for a country's central bank to try to keep the inflation rate near
A) the country's historical average economic growth rate.
B) some predetermined level.
C) the country's historical average inflation rate.
D) the country's historical average unemployment rate.

Question

Quizplus · Accepted Answer

The objective of inflation targeting is for the central bank to aim for a predetermined level of inflation, typically around 2% per year. This provides stability for the economy and helps maintain low inflation expectations among consumers and businesses. The other options (A, C, and D) are not the primary focus of inflation targeting.

The Object of Inflation Targeting Is for a Country's Central