Because money growth is a major component determining the inflation rate, in order to forecast inflation we should forecast actions by the
A) Office of the Treasury.
B) President.
C) Congress.
D) Fed.
E) U.S.Mint.

Question

Quizplus · Accepted Answer

The Fed (Federal Reserve System) is responsible for managing the money supply and setting monetary policy, which directly affects the inflation rate. Therefore, forecasting inflation requires predicting the actions of the Fed.

Because Money Growth Is a Major Component Determining the Inflation