With Inflation Targeting, the Federal Reserve Would Be Required to Announce

question 119

Multiple Choice

With inflation targeting, the Federal Reserve would be required to announce its targeted band for:

• A) Unemployment
• B) Economic growth
• C) Changes in the price level
• D) Changes in the rate of taxation

---

Definitions:

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Monetary Policy

A strategy used by a country's central bank to control the money supply and interest rates in order to influence economic activity.

Aggregate Demand

The total demand for all goods and services in an economy at a given time and price level.