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Economics Q188

0. A central bank determines the definition of inflation that it targets, the rate of inflation that it targets, and the horizon over which the target is to be achieved. It also decides the level of interest rates. The central bank is:

  • Option : C
  • Explanation : Central banks that are both operationally and target independent, not only decide the level of interest rates, but they also determine the definition of inflation that they target, the rate of inflation that they target, and the horizon over which the target is to be achieved.
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