To Restore Growth and Reduce Unemployment in Response to a Negative

Multiple Choice

To restore growth and reduce unemployment in response to a negative real shock,the Federal Reserve would:

A) decrease the money growth rate,which will lower both the inflation rate and economic growth rate.
B) decrease the money growth rate,which will increase both the inflation rate and economic growth rate.
C) increase the money growth rate,which will lower both the inflation rate and economic growth rate.
D) increase the money growth rate,which will increase both the inflation rate and economic growth rate.