Critics of Inflation Targeting Argue That _____

Multiple Choice

Critics of inflation targeting argue that _____.

A) it can lead to lower aggregate supply in the long run
B) forecasting future inflation may be inaccurate, leading to inefficiency
C) governments are too flexible with inflation target rates and need to be more tight
D) targeting inflation may cause net exports to fall in the long run
E) the government can run into a deficit as a result of targeting inflation