Charts that Count: how online shopping keeps inflation down

What is the Federal Reserve's target inflation rate, and why is it set at this level?

• 4%

• 1%

• 2%

• 3%

How does the Digital Price Index (DPI) differ from the Consumer Price Index (CPI)?

• DPI includes only luxury goods

• DPI measures offline purchases only

• DPI is generally higher than CPI

• DPI measures online purchases and is generally lower than CPI

Which of the following is NOT a structural factor that can lead to lower inflation?

• Technology

• Globalization

• Increased consumer spending

• Productivity

What role do businesses play in the impact of tariffs on consumer prices?

• They have no control over passing costs to consumers

• They can choose whether to pass higher costs to consumers

• They must always pass costs to consumers

• They are unaffected by tariffs

Why might the Federal Reserve need to reconsider its 2% inflation target?

• Due to temporary factors only

• Because of structural changes like globalization and technology

• Because inflation is always above 2%

• Because the economy is shrinking