A Decrease in a Broad Index of Commodity Prices Suggests

Multiple Choice

A decrease in a broad index of commodity prices suggests to the Fed that

A) money is plentiful, and the Fed should conduct restrictive policy.
B) money is plentiful, and the Fed should conduct expansionary policy.
C) deflation is a potential future danger, and the Fed should conduct expansionary policy.
D) future prices will likely increase, and the Fed should conduct expansionary policy.