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.