
-In the above figure, suppose that the economy is at point B. Which of the following policy options for the Fed will move the economy toward its LAS?
A) lower the federal funds rate
B) raise the federal funds rate
C) decrease the government's budget deficit
D) decrease taxes
Correct Answer:
Verified
Q123: If the Fed is concerned with inflation
Q124: If the Fed fears inflation it will
Q125: If the Fed wants to fight inflation,
Q126: Q127: Consumer confidence in the economy rises, and Q129: If the Fed raises the interest rate, Q130: When the Federal Reserve fights inflation via Q131: When the Federal Reserve fights inflation via Q132: According to the AS/AD model, in the Q133: ![]()
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