If the Fed Wants to Reverse the Effects of an Adverse

Multiple Choice

If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should

A) increase the money supply growth rate, which raises the inflation rate.
B) increase the money supply growth rate, which reduces the inflation rate.
C) decrease the money supply growth rate, which raises the inflation rate.
D) decrease the money supply growth rate, which reduces the inflation rate.