In 2007, the Fed engaged in inflation targeting when it lowered the interest rate in anticipation of a recession.

Question

Quizplus · Accepted Answer

Inflation targeting involves adjusting interest rates to keep inflation within a target range, not specifically lowering them in anticipation of a recession. Lowering rates in anticipation of a recession is more about stimulating economic growth rather than targeting inflation.

In 2007, the Fed Engaged in Inflation Targeting When It