When there is a threat of inflation in the economy, the Fed can ...

[sdfghj]

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

Question 2

Other things constant, which case would tend to reflect the highest elasticity of demand for eggs?
 
  A) A restaurant that spends 1 of their budget on eggs
  B) A restaurant that spends 2 of their budget on eggs
  C) A restaurant that spends 5 of their budget on eggs
  D) The question can't be answered without information on the price of eggs.

[mbcrismon]

Answer to Question 1

D

Answer to Question 2

C

[sdfghj]

Excellent

[adf223]

TYSM