The Fed prefers to target a positive rate of inflation because a. the Fed target is...
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The Fed prefers to target a positive rate of inflation because a. the Fed target is flexible as long as the inflation rate is a positive number. o b. the Fed keeps inflation high to benefit those with high debt. c. the Fed wants to keep inflation high to keep unemployment low. O d. the Fed wants some inflation to provide a buffer from deflation QUESTION 7 Why is the FOMC more concerned about persistent inflation rather than transitory inflation? O a. Transitory inflation is likely due to the Fed using monetary policy tools to push unemployment down, which is worth the tradeoff. b.Persistent inflation will likely be short-lived as numbers "drop out' of the year-over-year calculations. c. Persistent inflation is short-lived, and therefore its effects are not concerming to policymakers. d. Transitory inflation is likely due to short-lived effects such as supply chain bottlenecks that will be corrected as workers and businesses react QUESTION 8 Which measure of inflation does the FOMC specify as its inflation target? O a. Personal consumption expenditures price index (PCEPI) O b. GDP deflator Oc Consumer Price Index (CPI) O d. Core consumer price index (core CPI) The Fed prefers to target a positive rate of inflation because a. the Fed target is flexible as long as the inflation rate is a positive number. o b. the Fed keeps inflation high to benefit those with high debt. c. the Fed wants to keep inflation high to keep unemployment low. O d. the Fed wants some inflation to provide a buffer from deflation QUESTION 7 Why is the FOMC more concerned about persistent inflation rather than transitory inflation? O a. Transitory inflation is likely due to the Fed using monetary policy tools to push unemployment down, which is worth the tradeoff. b.Persistent inflation will likely be short-lived as numbers "drop out' of the year-over-year calculations. c. Persistent inflation is short-lived, and therefore its effects are not concerming to policymakers. d. Transitory inflation is likely due to short-lived effects such as supply chain bottlenecks that will be corrected as workers and businesses react QUESTION 8 Which measure of inflation does the FOMC specify as its inflation target? O a. Personal consumption expenditures price index (PCEPI) O b. GDP deflator Oc Consumer Price Index (CPI) O d. Core consumer price index (core CPI)
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