Inflationary Pressures Caused the FOMC to Increase the Federal Funds

question 27

Multiple Choice

Inflationary pressures caused the FOMC to increase the federal funds rate by ¼ of a percentage point in June 2004,and by exactly the same amount at every subsequent FOMC meeting through June of 2006. Theses actions

• A)caused an upward movement along the monetary policy curve.
• B)caused a downward movement along the monetary policy curve.
• C)shifted the monetary policy curve upward.
• D)shifted the monetary policy curve downward.

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