When the chairman of the Federal Reserve announced a goal of "zero inflation," which of the following economic policies was most likely being changed?
A)Fiscal policy.
B)Monetary policy.
C)Supply-side policy.
D)Congressional policy.

Question

Quizplus · Accepted Answer

The chairman of the Federal Reserve can only change monetary policy, not fiscal or congressional policy, and supply-side policy is not directly related to inflation goals. Therefore, the announcement of a goal of "zero inflation" would most likely be a change in monetary policy.

When the Chairman of the Federal Reserve Announced a Goal