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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Definitions:

Milk of Magnesia

An over-the-counter medication, primarily used as an antacid and laxative, containing magnesium hydroxide.

Schedule V

A classification for drugs and substances with a low potential for abuse compared to drugs or substances in Schedules I-IV, often involving preparations containing limited quantities of certain narcotics.

Antitussives

Medications or substances used to suppress or relieve coughing.

Antidiarrheals

Medications or substances used to slow the frequency of diarrhea and reduce the fluidity of bowel movements.