When the Fed Worries About Inflation,it ________ the Federal Funds

question 29

Multiple Choice

When the Fed worries about inflation,it ________ the federal funds rate and,in the short run,________ the real interest rate.

• A)lowers;lowers
• B)lowers;raises
• C)raises;lowers
• D)raises;raises
• E)does not change;the Fed raises