If the Fed wants to fight inflation, it will_{--------------------}the federal funds rate in order to _{--------------------} A)raise; decrease aggregate supply B)raise; increase aggregate supply C)raise; decrease aggregate demand D)lower; decrease aggregate demand E)lower; increase aggregate supply

Question

Quizplus · Accepted Answer

Raising the federal funds rate makes borrowing more expensive, which reduces consumer and business spending, thereby decreasing aggregate demand and helping to fight inflation.

If the Fed Wants to Fight Inflation, It Will--------------------the Federal

If the Fed Wants to Fight Inflation, It Will_{--------------------}the Federal