When the financial crisis started in August 2007,inflation was rising and the Fed began an aggressive easing lowering of the federal funds rate,which indicated that
A)there was an upward movement along the monetary policy curve.
B)there was a downward movement along the monetary policy curve.
C)the monetary policy curve shifted upward.
D)the monetary policy curve shifted downward.

Question

Quizplus · Accepted Answer

The Fed's aggressive easing and lowering of the federal funds rate indicates a downward shift in the monetary policy curve, as it reflects a more accommodative monetary policy stance to stimulate the economy.

When the Financial Crisis Started in August 2007,inflation Was Rising