Which statement is FALSE?
A)The Fed rule-of-thumb sets the federal funds rate on the basis of both the inflation rate and the output gap, whereas inflation targeting is based on a desired inflation rate
B)The Fed rule-of-thumb sets the federal funds rate on the basis of both the inflation rate and the output gap, whereas inflation targeting is based on a desired inflation rate.
C)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a forecast of the inflation rate
D)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a forecast of the inflation rate.
E)The Fed rule-of-thumb can be more flexible, whereas inflation targeting provides more transparency and accountability
F)The Fed rule-of-thumb can be more flexible, whereas inflation targeting provides more transparency and accountability.
G)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a target interest rate and business cycles
H)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a target interest rate and business cycles.

Question

Quizplus · Accepted Answer

The Answer of Which statement is FALSE?
A)The Fed rule-of-thumb sets the federal funds rate on the basis of both the inflation rate and the output gap, whereas inflation targeting is based on a desired inflation rate
B)The Fed rule-of-thumb sets the federal funds rate on the basis of both the inflation rate and the output gap, whereas inflation targeting is based on a desired inflation rate.
C)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a forecast of the inflation rate
D)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a forecast of the inflation rate.
E)The Fed rule-of-thumb can be more flexible, whereas inflation targeting provides more transparency and accountability
F)The Fed rule-of-thumb can be more flexible, whereas inflation targeting provides more transparency and accountability.
G)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a target interest rate and business cycles
H)The Fed rule-of-thumb sets the federal funds rate on the basis of past inflation rates, whereas inflation targeting is based on a target interest rate and business cycles.

Which Statement Is FALSE