Most economists think the Federal Reserve should target
A) income and output in the long run.
B) price stability in the long run.
C) price stability in the short run.
D) the federal funds rate.

Question

Quizplus · Accepted Answer

Most economists believe that the primary objective of the Federal Reserve should be to maintain price stability in the long run. This means keeping inflation low and stable, rather than targeting short-term variations in the economy. Price stability is seen as an important factor in promoting economic growth and maintaining confidence in the economy.

Most Economists Think the Federal Reserve Should Target