If the Fed Wants to Fight Inflation, It Will ________

question 160

Multiple Choice

If the Fed wants to fight inflation, it will ________ the federal funds rate, which in the short run shifts the ________.

• A) lower; AD curve rightward
• B) lower; AD curve leftward
• C) raise; AD curve rightward
• D) raise; AD curve leftward

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Definitions:

Needs

Basic requirements for human survival and psychological well-being, such as food, water, and belonging.

Preference

A predilection or inclination for something over others, often reflecting values, desires, or needs.

Motivation Index

A measure or indicator of an individual's level of motivation.

Activation

The act of making something active or operative, especially within biological or technical systems.