A Decision on the Part of the FOMC to Raise

Multiple Choice

A decision on the part of the FOMC to raise interest rates must necessarily be followed by

A) Fed open market purchases, which lower the money supply and reduce interest rates.
B) Fed open market purchases, which increase the money supply and reduce interest rates.
C) Fed open market sales, which lower the money supply and increase interest rates.
D) Fed open market sales, which increase the money supply and reduce interest rates.