If the Fed Wished to Eliminate an Inflationary Gap, Which

question 189

Multiple Choice

If the Fed wished to eliminate an inflationary gap, which of the following would be an appropriate policy?

• A) buy government securities
• B) decease the government budget deficit
• C) lower the federal funds rate
• D) raise the federal funds rate

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Definitions:

Cellular Network

A communication network where the last link is wireless, organized into a large number of geographically distributed cells.

Smartphones

Mobile phones that offer advanced computing abilities and connectivity options, typically providing internet access, email, and a wide range of applications.

Wi-Fi

A technology that allows electronic devices to connect to a wireless LAN network, often used for accessing the internet.

WPA2 Encryption

A security protocol developed for Wi-Fi networks to provide a secure communication channel by encrypting data.