If inflation increases, one would expect that the Fed would:
A)wind down unconventional policy more quickly.
B)wind down unconventional policy more slowly.
C)reintroduce unconventional policy.
D)change unconventional policy to conventional policy.

Question

Quizplus · Accepted Answer

When inflation increases, the Federal Reserve (Fed) is likely to wind down unconventional monetary policies more quickly to tighten the monetary supply and combat inflation. Unconventional policies are typically introduced to stimulate the economy during downturns or periods of low inflation.

If Inflation Increases, One Would Expect That the Fed Would