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Suppose the Federal Reserve Raises Interest Rates

Question 274

Multiple Choice

Suppose the Federal Reserve raises interest rates. Which situation would MOST likely trigger such a policy move?


A) The U.S. dollar had appreciated, and inflation was high.
B) The U.S. dollar had depreciated, and inflation was low.
C) The U.S. dollar had appreciated, and unemployment was high.
D) The U.S. dollar had appreciated, and unemployment was low.

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