To eliminate built-in inflation from the economy,the Fed must
A) announce its intention to have a single policy objective
B) create a recession
C) maintain a constant rate of inflation
D) resist the temptation to change its interest rate targets
E) work closely with Congress and the President

Question

Quizplus · Accepted Answer

Creating a recession can reduce demand-pull inflation by decreasing consumer spending and business investment, which can help eliminate built-in inflation.

To Eliminate Built-In Inflation from the Economy,the Fed Must