Title: QUIZ: Why Does the Fed Care About Inflation? -- Inflation 101 Video Series
Course: Kelly O's Course > Section: Why Does the Fed Care About Inflation? -- Inflation 101 Video Series

Q: If inflation means prices go up, why is a little bit of inflation actually a good thing?
- It indicates that there are not enough jobs.
- It indicates that there are enough jobs and people are spending money.
- It indicates that people are hesitant to spend money on goods and services.
- It indicates the economy is stagnant and innovation has ceased.
A: It indicates that there are enough jobs and people are spending money.

Q: Rapid and out of control price increases is called _________.
- extra inflation
- super inflation
- inflationary boom
- hyperinflation
A: hyperinflation

Q: What is the goal level of inflation that the Federal Reserve aims to achieve?
- About 1-5%
- About 2%
- About 6%
- At least 10%
A: About 2%