When the Federal Reserve wants to slow inflation, it
A) lowers the federal funds rate.
B) increases taxes on interest income.
C) raises the federal funds rate target.
D) increases aggregate income, output, and employment.
E) cuts the federal funds rate target aggressively to almost zero.
Question 2
Kyle and Stan are playing Odds or Evens, where Kyle is designated as the odd player and Stan is designated as the even player. They decide to play the game 10 times. Stan's ideal mixture is to
A) shoot 1 every time since Kyle is the odd player.
B) shoot 2 every time since he is the even player.
C) shoot 1 50 of the time and shoot 2 50 of the time.
D) Stan's ideal mixture depends on Kyle's ideal mixture.