To ________ the Long-Term Real Interest Rate,the Fed Needs to ________

question 146

Multiple Choice

To ________ the long-term real interest rate,the Fed needs to ________.

• A) lower; lower the long-term nominal interest rate
• B) lower; lower the long-term expected inflation rate
• C) raise; lower the long-term nominal interest rate
• D) raise; raise the long-term expected inflation rate

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Definitions:

Motive

An internal driving force that causes a person to take action or behave in a certain way.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Goal

A desired outcome or target that an individual or group aims to achieve through their actions or efforts.

High-Level

Pertains to concepts, processes, or operations that are abstract, complex, or involve overarching principles or ideas.