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When There Is a Threat of Inflation in the Economy,the

Question 95

Multiple Choice

When there is a threat of inflation in the economy,the Fed can ________ the federal funds rate so as to ________ aggregate demand and ________ the price level.


A) lower;increase;decrease
B) raise;decrease;increase
C) lower;increase;increase
D) raise;decrease;decrease
E) raise;increase;decrease

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