If the Fed fears inflation, it ________ by ________ government ...

[darbym82]

If the Fed fears inflation, it ________ by ________ government securities.
 
  A) decreases aggregate supply; selling
  B) decreases aggregate demand; selling
  C) increases aggregate supply; buying
  D) decreases aggregate supply; buying
  E) increases aggregate demand; selling

Question 2

If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, before the expected inflation rate changes, the inflation rate ________ and the unemployment rate ________.
 
  A) does not change; falls
  B) falls; falls
  C) rises; does not change
  D) falls; rises
  E) rises; falls

[lindahyatt42]

Answer to Question 1

B

Answer to Question 2

E

[darbym82]

TYSM

[EAN94]

Excellent