130 120 110 100 + If the Fed fears inflation, it by OA. decreases aggregate supply; selling OB. decreases aggregate supply; buying OC. decreases aggregate demand; selling D. increases aggregate demand; selling OE. increases aggregate supply; buying government securities. A AS* AS₂ *****

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter17: The Philips Curve And Expetactions Theory
Section17.3: The Theory Of Rational Expectations
Problem 1YTE
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130
120
110
100 +
If the Fed fears inflation, it
by
Gur
A. decreases aggregate supply; selling
OB. decreases aggregate supply; buying
C. decreases aggregate demand; selling
OD. increases aggregate demand; selling
OE. increases aggregate supply; buying
government securities.
4
AS*
AS₂
*****
Transcribed Image Text:130 120 110 100 + If the Fed fears inflation, it by Gur A. decreases aggregate supply; selling OB. decreases aggregate supply; buying C. decreases aggregate demand; selling OD. increases aggregate demand; selling OE. increases aggregate supply; buying government securities. 4 AS* AS₂ *****
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