In March 2013 the Fed Announced That It Might Decrease

question 83

Multiple Choice

In March 2013 the Fed announced that it might decrease its open market purchases of securities by the end of the year. This announcement suggests that the Fed is concerned that

• A) the unemployment rate will increase.
• B) the inflation rate will rise.
• C) the federal funds interest rate will fall too low for the Fed to control it.
• D) the federal funds interest rate will rise too high for the Fed to control it.

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