Multiple Choice
Which of the following is NOT a disadvantage of inflation targeting?
A) If the U.S. inflation rate deviates substantially from the Fed's target inflation rate, the Fed could lose credibility.
B) The Fed's focus on inflation could result in a much higher unemployment level.
C) The Fed's focus on inflation will likely lead to a higher government budget deficit.
D) All of these are disadvantages of inflation targeting.
Correct Answer:

Verified
Correct Answer:
Verified
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