The Federal Funds Rate Increased from 2

question 108

Multiple Choice

The federal funds rate increased from 2.5 percent in February 2005 to 5.26 in February 2007. This change in the federal funds rate clearly indicates that during this period the Fed followed a(n) :

• A)expansionary fiscal policy.
• B)contractionary fiscal policy.
• C)expansionary monetary policy.
• D)contractionary monetary policy.

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