What impact would the Fed's raising the interest rate have on any inflationary pressure in the economy?
A) An increase in interest rates decreases the money demand, which could slow increases in the price level.
B) An increase in interest rates decreases the exchange rate, which causes net exports to rise, generating inflation.
C) An increase in interest rates increases real GDP, which creates inflation in an economy.
D) An increase in interest rates increases the money supply, which could cause the price level to increase.
A
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The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
Which of the following is not held constant in a demand schedule?
a. income b. tastes c. price d. expectations