Which of the Following Situations Is One in Which the Fed

Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?

A) Potential real GDP is projected to be above actual real GDP.
B) Potential real GDP is projected to be below actual real GDP.
C) Gross domestic product is growing too fast to keep the economy at full employment.
D) Consumer and business spending is growing so rapidly that there is a danger of a rapid increase in inflation.