The Fed Can Engage in Preemptive Strikes Against a Rise

question 93

Multiple Choice

The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate;it can act preemptively against negative demand shocks by ________ the federal funds interest rate.

• A)raising;lowering
• B)raising;raising
• C)lowering;lowering
• D)lowering;raising

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Definitions:

Mother

A female parent of a child or offspring.

Baby

A very young child, especially one newly or recently born.

Teratogen

An agent or factor that causes malformation of an embryo.

Developing Tissue

Growth or formation process of groups of cells that perform a similar function, especially as part of an organism's embryonic development.