If the Fed is concerned about inflation, its actions_{--------------------} long-term interest rates so that investment_{--------------------} and net exports _{--------------------}. A)lower; decreases; decrease B)raise; decreases; decrease C)lower; increases; decrease D)raise; increases; increase E)lower; increases; increase

Question

Quizplus · Accepted Answer

When the Fed is concerned about inflation, it typically raises interest rates to decrease investment and net exports, as higher rates make borrowing more expensive and the currency stronger.

If the Fed Is Concerned About Inflation, Its Actions-------------------- Long-Term

If the Fed Is Concerned About Inflation, Its Actions_{--------------------} Long-Term