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The Fed Can Engage in Preemptive Strikes Against a Rise

Question 93

Multiple Choice

The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate;it can act preemptively against negative demand shocks by ________ the federal funds interest rate.


A) raising;lowering
B) raising;raising
C) lowering;lowering
D) lowering;raising

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