Which of the Following Is Not an Argument Against Inflation

Multiple Choice

Which of the following is not an argument against inflation targeting?

A) Inflation targeting reduces the flexibility of the central bank to pursue other policy goals.
B) Inflation targeting assumes that the central bank can accurately forecast future inflation rates.
C) Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
D) Inflation targeting holds the central bank accountable for an inflation goal, but may make it less likely the central bank will achieve other goals.