An inflation goal set at a low rate but greater than zero allows all of the following except
A)The economy to achieve both full employment and price stability at the same time.
B)For errors because of new products.
C)For price increases caused by quality improvements.
D)The Fed to meet less often.

Question

Quizplus · Accepted Answer

A low inflation goal still necessitates the Fed to monitor and adjust interest rates to maintain price stability, regardless of how often they meet.

An Inflation Goal Set at a Low Rate but Greater