If the Fed Raises the Interest Rate,this Will ________ Inflation

question 22

Multiple Choice

If the Fed raises the interest rate,this will ________ inflation and ________ real GDP in the short run.

• A)reduce; raise
• B)increase; lower
• C)increase; raise
• D)reduce; lower

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Definitions:

Northwest Corner Allocation

A method used in operations research to solve transportation problems, starting allocations from the northwest corner of a cost matrix and working through to optimize transportation costs.

Source 1-Destination 2

An indicator or label used in logistics and supply chain management to denote the transfer of materials or goods from one location (source) to another (destination).

Objective Function

A mathematical expression in linear programming that maximizes or minimizes some quantity (often profit or cost, but any goal may be used).

Largest Possible Amount

The maximum quantity or extent something can reach or contain.