Which combination of signals is indicative that Fed policy is restrictive and that a shift to a more expansionary policy is in order?
A) Commodity prices are falling, and the dollar is appreciating.
B) Commodity prices are rising, and the dollar is appreciating.
C) Commodity prices are rising, and the dollar is depreciating.
D) Commodity prices are falling, and the dollar is depreciating.

Question

Quizplus · Accepted Answer

Falling commodity prices and an appreciating dollar suggest that monetary policy is too tight, reducing inflationary pressures and potentially slowing economic growth, indicating a need for more expansionary policy.

Which Combination of Signals Is Indicative That Fed Policy Is