Which of the following accurately describes the Fed's inflation target?
A) It is implicit rather than explicit.
B) It seeks to maintain an average inflation rate of 2% per year.
C) It seeks to keep inflation at 2% all the time.
D) Its goal is to achieve zero inflation.
B
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How does the shape of the aggregate supply curve affect macroeconomic analysis and policymaking? Illustrate your answer with the appropriate graphs.
What will be an ideal response?
Which of the following is a TRUE statement?
A. All economic goods are goods, but not all goods are economic goods. B. Economic goods and goods mean the same thing. C. Economic goods do not include services while goods do include services. D. All goods are economic goods.
By affecting the amount of reserves in the banking system, the Fed can
A. increase government purchases. B. affect the size of the money supply. C. reduce government purchases. D. change the marginal tax rates.
As the U.S. recession was developing in the summer of 2008, oil prices peaked near
A. $110 per barrel. B. $140 per barrel. C. $60 per barrel. D. $30 per barrel.