Multiple Choice
If there is a large increase in the price of oil and the Fed wishes to maintain stable output,which of the following should it do?
A) Do nothing,because the self-correcting mechanism will adjust the economy
B) Sell bonds in the open market
C) Wait,because output seldom changes when there is an increase in the price of oil
D) Encourage firms to not adjust the wages they pay
E) Buy bonds in the open market.
Correct Answer:
Verified
Correct Answer:
Verified
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