Detailed explanation and options for the selected question.
What is “inflation targeting”?
A.
Setting a fixed inflation rate for the economy
B.
Using monetary policy tools to keep inflation within a target range
C.
Reducing inflation to zero
D.
Focusing only on controlling prices
Explanation:
Inflation targeting involves using monetary policy to maintain inflation within a specific range. It does not imply setting a fixed rate or reducing inflation to zero.