Which of the following is not a disadvantage of inflation targeting?
A) If the U.S. inflation rate deviates substantially from the Fed's target inflation rate, the Fed could lose credibility.
B) The Fed's focus on inflation could result in a much higher unemployment level.
C) The Fed's focus on inflation could result in much higher interest rates, which would discourage economic growth.
D) All of the above are disadvantages of inflation targeting.

Question

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The Answer of Which of the following is not a disadvantage of inflation targeting?
A) If the U.S. inflation rate deviates substantially from the Fed's target inflation rate, the Fed could lose credibility.
B) The Fed's focus on inflation could result in a much higher unemployment level.
C) The Fed's focus on inflation could result in much higher interest rates, which would discourage economic growth.
D) All of the above are disadvantages of inflation targeting.

Which of the Following Is Not a Disadvantage of Inflation