Demand-pull inflation starts with A) an increase in aggregate ...

[yoooooman]

Demand-pull inflation starts with
 
  A) an increase in aggregate demand.
  B) a decrease in aggregate demand.
  C) an increase in potential GDP.
  D) an increase in aggregate supply.
  E) a decrease in aggregate supply.

Question 2

The Fed raises the interest rate when it
 
  A) fears recession.
  B) wants to increase the quantity of money.
  C) fears inflation.
  D) wants to encourage bank lending.
  E) cannot change the quantity of money.

[katheyjon]

Answer to Question 1

A

Answer to Question 2

C

[yoooooman]

Correct answers!

[katheyjon]

Great! Please up vote