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    Principles of Economics
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    Exam 33: Aggregate Demand and Aggregate Supply
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    When Inflation Rises Above Its Target Rate, the Federal Reserve
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When Inflation Rises Above Its Target Rate, the Federal Reserve

Question 28

Question 28

Multiple Choice

When inflation rises above its target rate, the Federal Reserve will:


A) increase taxes.
B) place a ceiling on interest rates.
C) raise interest rates.
D) lower interest rates.

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