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Which of the Following Is True with Respect to Inflation

Question 53

Multiple Choice

Which of the following is true with respect to inflation targeting?


A) Inflation targeting would allow the Fed more control over inflation caused by excessive aggregate demand.
B) Inflation targeting would require the Fed to maintain very strong economic growth.
C) Inflation targeting could control the inflation caused by higher oil prices.
D) Inflation targeting would allow the Fed to have more control over the unemployment rate.

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