One year, the lead sentence in a Wall Street Journal article read, "Tight job markets, rising wages, and the economy's continued strength put more pressure on the Federal Reserve to raise short-term interest rates." If the Fed responded to this pressure, it would adopt:

Question

Quizplus · Accepted Answer

Raising short-term interest rates is a tool of contractionary monetary policy, which is used to slow down an overheating economy. This can lead to reduced output as it becomes more expensive to borrow money for investment and spending.

One Year, the Lead Sentence in a Wall Street Journal