The Fed is concerned that inflation might occur. To help ...

[javeds]

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]

Answer to Question 1

E

Answer to Question 2

C