If Inflation Is a Threat, Then the Fed Will Conduct

question 69

Multiple Choice

If inflation is a threat, then the Fed will conduct monetary policy aimed at

• A) increasing the interest rate which then will shift aggregate demand to the right.
• B) decreasing the interest rate which then will shift aggregate demand to the right.
• C) decreasing the interest rate which then will shift aggregate demand to the left.
• D) increasing the interest rate which then will shift aggregate demand to theleft.

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