The Federal Reserve Will Tend to Tighten Monetary Policy with the Goal

Multiple Choice

The Federal Reserve will tend to tighten monetary policy with the goal is to stabilize the economy when

A) interest rates are rising too rapidly.
B) it thinks the unemployment rate is too high.
C) the growth rate of real GDP is quite sluggish.
D) it thinks inflation is too high today, or will become too high in the future.