During the latter half of 2004 and the beginning of 2007, the Fed adopted a policy that consistently increased the federal funds rate. The most likely goal of this policy was to:
A. decrease inflation by increasing aggregate demand.
B. increase output by decreasing aggregate demand.
C. decrease inflation by decreasing aggregate demand.
D. increase output by increasing aggregate demand.
Answer: C
You might also like to view...
Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$0$88080160152240224320296400368The marginal propensity to save in this economy is
A. 0.9. B. 0.1. C. 0.8. D. 0.72.
An increase in technology for producing personal computers leads to
A) an increase in the demand for personal computers. B) a decrease in the demand for personal computers. C) an increase in the supply of personal computers. D) a decrease in the supply of personal computers.
For a firm to reduce competitive intensity, it should
a. Enact barrier to entry b. Lobby to the government c. Acquire patents d. All the above
Productivity levels in rich countries are:
a. higher than in poor countries b. lower than in poor countries c. about the same as in poor countries d. not related to those in poor countries