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19-01-2024
Business

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If the Fed believes the inflation rate is about to increase, it should
A. use a contractionary fiscal policy to increase the interest rate and shift AD to the left.
B. use a combination of tax increases and spending cuts to keep the budget balanceD.
C. use a contractionary monetary policy to increase the interest rate and shift AD to the left.
D. use an expansionary monetary policy to lower the interest rate and shift AD to the right.

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