Why Is Monetary Policy Not Fully Effective in Combating a Negative

Multiple Choice

Why is monetary policy not fully effective in combating a negative supply shock?

A) The Fed has no tools that stimulate an economy after a negative supply shock.
B) When countering a negative supply shock,Fed action will cause deflation.
C) When countering a negative supply shock,Fed action will raise unemployment.
D) When countering a negative supply shock,Fed action will raise inflation.