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The Federal Reserve's Policy to "Lean Against the Wind" Means

Question 44

Multiple Choice

The Federal Reserve's policy to "lean against the wind" means that


A) when output is high, the Fed sets a high interest rate.
B) when price levels are high, the Fed sets a low interest rate.
C) when output is low, the Fed sets a high interest rate.
D) when price levels are low, the Fed sets a high interest rate.

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