Beginning in 2002, Federal Reserve policy
A) switched its focus from price stability to stimulating real GDP and reducing unemployment.
B) kept interest rates artificially high, driving housing prices upward.
C) kept interest rates artificially low, driving housing prices downward.
D) switched its focus from stimulating real GDP and reducing unemployment to price stability.

Question

Quizplus · Accepted Answer

In 2002, the Federal Reserve shifted its focus towards stimulating real GDP and reducing unemployment, which involved lowering interest rates to encourage borrowing and investment, contributing to economic growth.

Beginning in 2002, Federal Reserve Policy