Question
If the economy is running too hot (i.e., the actual output is above potential output), the Fed should ________ the policy interest rate or else
If the economy is running too hot (i.e., the actual output is above potential output), the Fed should ________ the policy interest rate or else inflation will _______ expectations.
increase; increase above
increase; fall below
decrease; increase above
decrease; fall below
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International Economics
Authors: Dominick Salvatore
12th edition
9781118955727, 1118955765, 1118955722, 978-1118955765
