Multiple Choice
Quarterly data for the years 1988-93 for the nominal federal funds interest rate and the output ratio show that the Fed
A) reacted to a high output ratio by raising the interest rate.
B) reacted to a high output ratio by lowering the interest rate.
C) reacted to low output ratios but not to high output ratios.
D) did not react to movements in the output ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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