All of the Following Help Provide the Basis for the Fed

Multiple Choice

All of the following help provide the basis for the Fed controlling the real interest rate in the IS-MP model EXCEPT

A) the Fed controls the federal funds rate through open market operations.
B) if expected future inflation remains stable, changes in nominal interest rates reflect changes in real interest rates.
C) short-term and long-term interest rates tend to move together.
D) the Fed's increased use of TIPS in conducting monetary policy.