What is inflation targeting? a. a policy that attempts to reduce inflation to zero. b. another name for contractionary monetary policy. c. committing the central bank to achieve an announced level of inflation. d. a target that links the fed's target for the federal funds rate to inflation.

Option (C) is correct.

Explanation:

Inflation targeting refers to a term that is used by the central bank of a nation to achieve a certain level of inflation from the current level of inflation. Inflation targeting is a monetary policy in which central bank announces the desired inflation target to the common public. Price stability is consider as the prime objective of the central bank while setting up a monetary policy.

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