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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
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 b. the Fed keeps inflation high to benefit those with high debt. c. the Fed wants to keep inflation high to keep unemployment low Od 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 concerning 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? a. Personal consumption expenditures price index (PCEPI) b. GDP deflator Oc Consumer Price Index (CPI) d. Core consumer price index (core CPI)
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