If the Fed Wished to Eliminate an Inflationary Gap, Which

question 44

Multiple Choice

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

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

---

Definitions:

Subpersonalities

Different aspects of a person's character or personality, each with its own viewpoints, desires, and motivations.

Doubling

In psychology or neuroscience, does not denote a specific universally recognized term but could imply processes where entities increase in number, frequency, or intensity.

Depersonalization

A condition where one feels detached from one's thoughts, feelings, and body, often described as feeling like an outside observer of oneself.

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's 'fight or flight' response to stressful situations.