Opponents of inflation targets say that _____
A) such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases.
B) the Fed pays less attention to jobs and economic growth when it sets such targets.
C) the Fed pays more attention to jobs and economic growth when it sets such targets.
D) such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases.
E) such targets encourage firms to plan on a low and stable inflation rate and hold down price increases.

Question

Quizplus · Accepted Answer

Opponents of inflation targets argue that by focusing solely on achieving a low and stable inflation rate, central banks like the Fed may pay less attention to other important economic goals, such as job creation and economic growth.

Opponents of Inflation Targets Say That _____