Opponents of Inflation Targets Argue That _____

Multiple Choice

Opponents of inflation targets argue that _____

A) such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases.
B) the Fed pays less attention to economic growth when it sets such targets.
C) such targets encourage firms to plan on a low and stable inflation rate and hold down price increases.
D) such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases.
E) the Fed pays more attention to jobs and economic growth when it sets such targets.