Author Question: The Fed is concerned that inflation might occur. To help eliminate this possibility, the Fed could ... (Read 66 times)

javeds

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The Fed is concerned that inflation might occur. To help eliminate this possibility, the Fed could ________ government securities to ________ the federal funds rate in the short run.
 
  A) buy; raise
  B) sell; not change
  C) sell; lower
  D) buy; lower
  E) sell; raise

Question 2

If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the long run the SRPC ________ and the LRPC ________.
 
  A) shifts downward; shifts leftward
  B) does not change; shifts rightward
  C) shifts upward; does not change
  D) shifts downward; does not change
  E) does not change; does not change



todom5090

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Answer to Question 1

E

Answer to Question 2

C



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