Opponents of Inflation Targets Say That _____

question 109

Multiple Choice

Opponents of inflation targets say that _____

• A) such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases.
• B) the Fed pays less attention to jobs and economic growth when it sets such targets.
• C) the Fed pays more attention to jobs and economic growth when it sets such targets.
• D) such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases.
• E) such targets encourage firms to plan on a low and stable inflation rate and hold down price increases.

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Definitions:

Days

Units of time representing 24 hours, used universally to measure time periods shorter than a week.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Months

Refers to each of the twelve distinct periods into which a year is divided, commonly used to measure periods of time in calendars.