If the Fed's policies aim to increase aggregate demand,the Fed must fear
A) inflation.
B) recession.
C) stagflation.
D) a supply shock that decreases potential GDP.
E) a supply shock that increases aggregate supply.
Correct Answer:
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Q142: Q143: The Fed raises the interest rate when Q144: When the economy is in a recession,the Q145: Which of the following is a problem Q146: If the AS and the AD curve Q148: As the Fed lowers the federal funds Q149: In the short run,lowering the federal funds Q150: If the Fed is concerned about a Q151: If the Fed lowers the federal funds Q152: If real GDP exceeds potential GDP,to move
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