Multiple Choice
A zero inflation rate is not the Fed's objective because
A) that would cause prices to rise
B) that would cause price to fall
C) it knows that it cannot attain a zero rate
D) it believes that the true rate of inflation is lower than what is measured by the Consumer Price Index (CPI)
E) high rates of inflation may help labor markets adjust more easily
Correct Answer:
Verified
Correct Answer:
Verified
Q31: When the Federal Reserve System was first
Q32: A fluctuating rate of inflation<br>A) will cause
Q33: In the 1960s,the U.S.experienced ongoing inflation.What was
Q34: One reason the Fed tolerates ongoing inflation
Q35: Since World War II,the U.S.economy has been
Q37: What is a good historical example of
Q38: The vertical long-run Phillips curve<br>A) implies that
Q39: If the Fed increases the money supply
Q40: Moving up the Phillips curve in the
Q41: The prices of stocks and bonds move<br>A)