If the Fed is concerned with inflation it will ________ the federal funds rate in order to ________ aggregate demand.

Name: If the Fed is concerned with inflation it will ________ the federal funds rate in order to ________ aggregate demand.
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Question

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The Fed raises the federal funds rate to decrease aggregate demand as part of its efforts to combat inflation. This makes borrowing more expensive, which tends to reduce spending and slow inflation.

If the Fed Is Concerned with Inflation It Will ________