One of the disadvantages of inflation targeting is i.   Strong dependence on the preferences, skills, and trustworthiness of individuals in charge ii.  Delayed signaling and excessive rigidity iii. Require a reliable relationship between the goal variable and the targeted monetary aggregate iv. Potential for increased output fluctuations and low economic growth during disinflation v.  Lack of transparency and accountability and inconsistent with democratic principlesSingle choice

A

i. and iii.

B

ii. and v.

C

iv. and v..

D

ii. and iv.

E

iii. and iv.

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Question at position 32 Inflation targeting _____imposes a rigid rule and could cause larger output fluctuationsis less transparent because it doesn’t rely on many variables to achieve the targetprovides an immediate signal through public announcements and intermediate targetsneeds a stable money-inflation relationship to reduce the effects of inflationary shocksis transparent, accountable, and flexible but could cause larger output fluctuations

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