Which of the following is a requirement in selecting a policy instrument? Show answer choices ^ (A) measurability B flexibility (C) predictability (D) controllability Question 13 Which of the following is an advantage of inflation targeting? Show answer choices ^ reduction of the time-inconsistency problem increased monetary policy transparency consistency with democratic principles D There is an immediate signal on the achievement of the target. Question 25 Which of the following is an element of inflation targeting? Show answer choices an institutional commitment to price stability as the primary long-run goal increased accountability of the central bank for attaining its inflation objectives a public announcement of medium-term numerical targets for inflation an information-inclusive approach in which only monetary aggregates are used in making decisions about monetary policy Which of the following is a disadvantage of the Fed's "just do it" approach to monetary policy? Show answer choices ^ This type of policy make the Fed more susceptible to the time-inconsistency problem. There is low transparency of policy. It relies on a stable money-inflation relationship. There is low accountability for central bankers. Using Taylor's rule, when the equilibrium real federal funds rate is 2 percent, there is no output gap, the actual inflation rate is zero, and the target inflation rate is 2 percent, the nominal federal funds rate should be Show answer choices 2 percent. B) 3 percent. 0 percent. 1 percent