When the Fed Worries About Inflation, It_{--------------------} the Federal Funds

question 84

Multiple Choice

When the Fed worries about inflation, it_{--------------------} the federal funds rate and, in the short run, _{--------------------}the real interest rate.

• A)raises; raises
• B)does not change; the Fed raises
• C)raises; lowers
• D)lowers; raises
• E)lowers; lowers

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Definitions:

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