The federal funds rate increased from 2.5 percent in February 2005 to 5.26 in February 2007. This change in the federal funds rate clearly indicates that during this period the Fed followed a(n) :
A) expansionary fiscal policy.
B) contractionary fiscal policy.
C) expansionary monetary policy.
D) contractionary monetary policy.
Correct Answer:
Verified
Q127: To target a rate that is higher
Q128: A reduction in the federal funds rate
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Q130: Suppose the federal funds rate is 5
Q131: If the federal funds rate rises above
Q133: A reduction in the federal funds rate
Q134: To achieve its target when the federal
Q135: To achieve its target when the federal
Q136: An increase in the federal funds rate
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