Which Statement About Inflation Targeting Is TRUE

question 186

Multiple Choice

Which statement about inflation targeting is TRUE?

• A) Inflation targeting calls for the Fed to set the growth rate of the money supply equal to the long-term growth rate of the economy.
• B) Advocates of inflation targeting believe the economy is inherently stable.
• C) If the Fed pursues an inflation target,it increases the money supply when the actual inflation rate is below the target inflation rate.
• D) If the Fed pursues an inflation target,it does not change the money supply unless the actual or forecast inflation rate is above the target inflation rate.

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Definitions:

Reputation Orally

The perception of an individual's or entity's character and standing communicated through spoken word.

Immediate Physical Harm

Direct physical injury or damage that occurs without delay.

Assault

Any word or action intended to make another person fearful of immediate physical harm; a reasonably believable threat.

Reasonably Believable

A standard of evidence which suggests that a claim or assertion is plausible based on the circumstances and available information.