Multiple Choice
In 2012, U.S. core inflation was 2.1 percent. This inflation rate
A) is lower than the inflation rate that the Fed accepts as creating stable prices.
B) is about equal to the inflation rate that the Fed accepts as creating stable prices.
C) is more than 2 percentage points higher than the inflation rate that the Fed accepts as creating stable prices.
D) None of the above answers are correct because the Fed has never associated an inflation rate with stable prices.
Correct Answer:

Verified
Correct Answer:
Verified
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