Opponents of Inflation Targets Say That

question 115

Multiple Choice

Opponents of inflation targets say that

• A)such targets encourage workers to plan on a low and stable inflation rate and hold down demands for wage increases
• B)the Fed will pay less attention to jobs and economic growth
• C)such targets encourage firms to plan on a low and stable inflation rate and hold down price increases
• D)such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases
• E)None of the answers is correct