When the Fed worries about inflation, it ________ the federal ...

[Medesa]

When the Fed worries about inflation, it ________ the federal funds rate and, in the short run, ________ the real interest rate.
 
  A) raises; raises
  B) raises; lowers
  C) lowers; lowers
  D) does not change; the Fed raises
  E) lowers; raises

Question 2

One reason that economists usually engage in ________ economic analysis is because the question of fair division of resources is ________ to decide objectively.
 
  A) positive; easy
  B) positive; hard
  C) normative; easy
  D) normative; hard

[s.meritte]

Answer to Question 1

A

Answer to Question 2

B