If the economy is in a recession, inflation will be ____, and the Fed will want to ____ the interest rate in order to ____ real GDP.

Name: If the economy is in a recession, inflation will be ____, and the Fed will want to ____ the interest rate in order to ____ real GDP.
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Question

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When the economy is in a recession, inflation tends to fall as demand for goods and services decrease. The Fed will want to decrease the interest rate to encourage borrowing and spending which will increase real GDP.

If the Economy Is in a Recession, Inflation Will Be