A Recent FOMC Statement Asserts: "Measures of Underlying Inflation Are

Multiple Choice

A recent FOMC statement asserts: "Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent,over the longer run,with its mandate to promote ...price stability." Your parents have taken interest in your fascinating Macroeconomics course and ask you to interpret this quote.* You tell them:

A) "The Fed believes that unemployment is recovering quickly."
B) "The Fed is worried about spiking inflation."
C) "The Fed is worried about deflation or inflation that is too low."
D) "The economy has recovered,and it's business as usual."
E) "The Fed is trying to appease stock markets."