If Aggregated Demand Is Growing Faster Than Potential Output, Then

question 15

Multiple Choice

If aggregated demand is growing faster than potential output, then the Federal Reserve is likely to

• A)lower interest rates because the rate of inflation is falling or is likely to fall.
• B)raise interest rates because the rate of inflation is rising or is likely to rise.
• C)raise interest rates because the rate of inflation is falling or is likely to fall.
• D)lower interest rates because the rate of inflation is rising or is likely to rise.
• E)do nothing because it is not clear how the rate of inflation will be affected.

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To be present or participate in a particular event or activity.

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A person who brings order, manages tasks, or arranges events and responsible for planning and execution.

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