Which of the following would cause the Fed to raise interest rates?
A)An increase in imports
B)An increase in consumer confidence
C)An increase in saving
D)An increase in taxes
E)A decrease in exports

Question

Quizplus · Accepted Answer

An increase in consumer confidence often leads to increased spending, which can raise inflationary pressures. To combat this, the Fed might raise interest rates to cool down the economy and control inflation.

Which of the Following Would Cause the Fed to Raise