Opponents of Inflation Targets Say That

Multiple Choice

Opponents of inflation targets say that

A) such targets encourage workers to plan on a low and stable inflation rate and hold down demands for wage increases
B) the Fed will pay less attention to jobs and economic growth
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) None of the answers is correct