During the Latter Half of 2004 and the Beginning of 2007

Multiple Choice

During the latter half of 2004 and the beginning of 2007, the Fed adopted a policy that consistently increased the federal funds rate. The most likely goal of this policy was to:

A) decrease inflation by decreasing aggregate demand.
B) decrease inflation by increasing aggregate demand.
C) increase output by decreasing aggregate demand.
D) increase output by increasing aggregate demand.