11. When the Federal Reserve (U.S.) has caused the federal funds rate t increase, they likely were doing this to O keep the inflation rate low. O cause an increase in unemployment. cause an increase in realGDP. O none of the other options. O cause inflation.

11. When the Federal Reserve (U.S.) has caused the federal funds rate t increase, they likely were doing this to O keep the inflation rate low. O cause an increase in unemployment. cause an increase in realGDP. O none of the other options. O cause inflation.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 6PA

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Concept explainers

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.

Question

With explaination please.

11. When the Federal Reserve (U.S.) has caused the federal funds rate to
increase, they likely were doing this to
O keep the inflation rate low.
O cause an increase in unemployment.
O cause an increase in realGDP.
O none of the other options.
cause inflation.

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