Under its recent policy of inflation targeting, the Fed has committed to adjusting monetary policy as necessary to achieve a target inflation rate of
A)5 percent.
B)2 percent.
C)0 percent.
D)8 percent.

Question

Quizplus · Accepted Answer

The Federal Reserve has set a long-term inflation target of 2 percent as part of its monetary policy strategy to promote maximum employment and stable prices.

Under Its Recent Policy of Inflation Targeting, the Fed Has