THE FED CAN ENGAGE IN PREEMPTIVE STRIKES AGAINST A RISE IN INFLAT...

107) The Fed can engage in preemptive strikes against a rise in inflation by _____ the federal funds interest rate; it can act preemptively against negative demand shocks by _____ the federal funds interest rate. (a) raising; lowering (b) raising; raising (c) lowering; lowering (d) lowering; raising Answer: A Question Status: Previous Edition