Most economists think the Fed should target:
A) income and output in the long run.
B) price stability in the long run.
C) price stability in the short run.
D) the federal funds rate.

Question

Quizplus · Accepted Answer

Most economists believe that the long-run goal of the Federal Reserve should be to maintain price stability. This means keeping inflation low and stable, which promotes economic growth and stability in the long term. While other goals such as supporting employment and stabilizing financial markets are important, price stability is considered the most important long-term objective.

Most Economists Think the Fed Should Target