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The Fed is likely to have the higher federal funds rate target range in situation _______ because the higher federal funds rate _______.     A. B ; increases the recessionary gap and lowers the core inflation rate   B. A ; increases the inflationary gap and lowers the core inflation rate

The Fed is likely to have the higher federal funds rate target range in situation _______ because the higher federal funds rate _______.     A. B ; increases the recessionary gap and lowers the core inflation rate   B. A ; increases the inflationary gap and lowers the core inflation rate

MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter16: Monetary Policy
Section16.3: Comparison Of Macroeconomic Views
Problem 1.1YTE
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The Fed is likely to have the higher federal funds rate target range in situation _______ because the higher federal funds rate _______.
 
 
A.
B
;
increases the recessionary gap and lowers the core inflation rate
 
B.
A
;
increases the inflationary gap and lowers the core inflation rate
 
C.
A
;
decreases the inflationary gap and lowers the core inflation rate
 
D.
B
;
decreases the recessionary gap and lowers the core inflation rate
Thanks!
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