In 2012, the Fed
A)adopted a strict monetary rule of 2 percent per year.
B)adopted inflation targeting, setting a target rate of 2 percent per year.
C)relaxed all monetary rules and targets in favor of a fully flexible monetary policy.
D)adopted a nominal GDP growth rate target of 6 percent per year.

Question

Quizplus · Accepted Answer

In 2012, the Federal Reserve adopted an inflation targeting policy, setting a target inflation rate of 2 percent per year to help guide monetary policy decisions.