Which of the Following Is NOT a Disadvantage of Inflation

question 3

Multiple Choice

Which of the following is NOT a disadvantage of inflation targeting?

• A)If the U.S. inflation rate deviates substantially from the Fed's target inflation rate, the Fed could lose credibility.
• B)The Fed's focus on inflation could result in a much higher unemployment level.
• C)The Fed's focus on inflation will likely lead to a higher government budget deficit.
• D)All of these are disadvantages of inflation targeting.

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Definitions:

Personal Mission Statement

A concise expression of an individual's core values, beliefs, and goals, aimed to guide their behavior and decisions.

Carl Jung's Typology

A theory of personality that categorizes people into psychological types based on their preferences in perceiving the world and making decisions.

Intuitive

People who are more comfortable with theories, abstraction, imagination, and speculation.

Thinker

A person who likes to analyze problems using facts and rational logic.