Question

Is inflation decreasing, increasing, or stable?
b. is actual output greater than or less than potential output?
c. is unemployment rising or falling?
d. is the federal reserve more likely to pursue expansionary or?

Answer 1

Answer:  
With less disposable income to spend as a result of the increase in savings, the economy slows and inflation decreases. ... By moving interest rate targets up or down, the Fed attempts to achieve target employment rates, stable prices, and stable economic growth.