"As Greenspan Chases Inflation, Critics Shout, 'Faster!'
"For weeks, the Fed has broadcast its intention to raise interest rates glacially." The Fed was moving slowly, according to an economist because "... the declining price of oil, economic fundamentals, incl productivity and global competition, will keep inflation in check." The Fed, recognizing that the eco was improving stated it planned to "respond to changes in economic prospects as needed to fulfill i obligation to maintain price stability." Other economists disagree with the Fed's restrained policy "mistake"
Www) nytimes, 7/1/20
As a result of the Fed's policy, which of the rates will increase?
A) the short- term interest rate
B) the long- term interest rate
C) the exchange rate
D) all of the interest rates listed above will increase
Correct Answer:
Verified
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