An Inflation Rate Targeting Rule

question 189

Multiple Choice

An inflation rate targeting rule

• A) will not work if the Fed continues to sue open market operations.
• B) has been adopted the by the Fed in response to the financial crisis of 2008 -2009.
• C) means that the inflation rate must exceed 5 percent in order for the rule to be effective.
• D) reduces uncertainty about monetary policy.

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