If the Fed Wants to Fight Inflation, It Will ________

question 7

Multiple Choice

If the Fed wants to fight inflation, it will ________ the federal funds rate in order to ________.

• A) raise; decrease aggregate demand
• B) raise; decrease aggregate supply
• C) raise; increase aggregate supply
• D) lower; increase aggregate supply
• E) lower; decrease aggregate demand

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Definitions:

Recall

The process of retrieving information or memories from one's past without the aid of explicit cues.

Graduation

The act of completing and receiving an academic degree or diploma from an educational institution, marking the end of a particular course of study.

Mood-congruent Memory

The inclination to remember experiences that align with one's present emotional state.

Depressed People

Individuals experiencing a state of low mood and aversion to activity, affecting their thoughts, behavior, feelings, and sense of well-being.