To get around the problems of information lag and impact lag, Alan Greenspan led the Fed in using which of these methods for a period of nearly 20 years, and with what results?
A) Greenspan used explicit inflation targeting and met many inflation goals; inflation stayed relatively low and recessions were modest.
B) Greenspan used implicit inflation targeting to stop inflation before it began; inflation stayed relatively low and recessions were modest.
C) Greenspan used implicit inflation targeting to stop inflation before it began; inflation was relatively high, nonetheless.
D) Greenspan used explicit inflation targeting but met few inflation goals; inflation was relatively high.
Correct Answer:
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