If the Fed wished to eliminate an inflationary gap, which of the following would be an appropriate policy?
A) raise the federal funds rate
B) lower the federal funds rate
C) buy government securities
D) decease the government budget deficit
Correct Answer:
Verified
Q117: In the short run, _ the federal
Q118: The short-run effect of lowering the federal
Q119: Q120: In the aggregate supply-aggregate demand model, raising Q121: In the short run, the Fed's actions Q123: If the Fed is concerned with inflation Q124: If the Fed fears inflation it will Q125: If the Fed wants to fight inflation,
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