If the Fed Sets a Target Rate of Inflation Below

question 112

Multiple Choice

If the Fed sets a target rate of inflation below 4 percent, it is an example of the Fed using

• A) a monetary policy rule.
• B) discretion.
• C) unofficial influence.
• D) the bully pulpit.

---

Definitions:

Existing Fact

A fact that is already in existence and can influence a contract's formation, interpretation, or execution.

Past Fact

Information or events that have already occurred and are considered in the making of decisions or judgment.

Undue Influence

Improper or unfair persuasion by one party over another, often resulting in decisions or agreements that benefit the influencer.

Clergyman

A male priest, minister, or religious leader, especially one authorized to perform sacred rituals and ceremonies in Christian denominations.