The Federal Reserve

question 232

Multiple Choice

The Federal Reserve

• A) does not have an inflation target; if it did it would likely be 1% or less.
• B) does not have an inflation target; if it did it would likely be in the range of 2%.
• C) does have an inflation target; it is 1%.
• D) does have an inflation target; it is a range from 1-3%.

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Definitions:

Price Elastic

describes the responsiveness of the quantity demanded of a good to a change in its price.

Industry Supply

The total quantity of a product or service that is available for purchase in a specific industry at a given price and time.

Transport Cost

Expenses associated with the movement of goods or people from one location to another.

Land Rent

Payment made for the use of land, typically in agriculture, business, or as part of real estate transactions.