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To Determine Whether the Goal of Stable Prices Is Being

Question 2

Multiple Choice

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the___________ but uses as its operational guide the ___________.


A) CPI; core inflation rate
B) core CPI; core inflation rate
C) GDP price deflator; CPI
D) core inflation rate; CPI inflation rate

Correct Answer:

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