Author Question: If the Fed fears inflation, then the Fed A) directs banks to raise the nominal interest rate. B) ... (Read 182 times)

gonzo233 · **on:** Jun 29, 2018

If the Fed fears inflation, then the Fed

A) directs banks to raise the nominal interest rate.
B) will increase the income tax rate on interest income.
C) directs banks to lower the nominal interest rate.
D) will sell government securities in the open market.
E) will buy government securities in the open market.

Question 2

Laws regulating pollution emissions can change the size of the economic pie.

Indicate whether the statement is true or false