The Fed Lowered Interest Rates in 2001 and 2002

question 4

Multiple Choice

The Fed lowered interest rates in 2001 and 2002.This implies,other things the same,that the Fed

• A)increased the money supply because it was concerned about unemployment.
• B)increased the money supply because it was concerned about inflation.
• C)decreased the money supply because it was concerned about unemployment.
• D)decreased the money supply because it was concerned about inflation.