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If aggregated demand is growing faster than potential output, then the Federal Reserve is likely to A lower interest rates because the rate of inflation

If aggregated demand is growing faster than potential output, then the Federal Reserve is likely to A lower interest rates because the rate of inflation is falling or is likely to fall B raise interest rates because the rate of inflation is rising or is likely to rise C raise interest rates because the rate of inflation is falling or is likely to fall D lower interest rates because the rate of inflation is rising or is likely to rise

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