If the Fed responds by increasing the money supply in response to a successful wage push by workers,monetary policy is said to be
A)accomplishing.
B)nonaccommodating.
C)nonaccomplishing.
D)accommodating.

Question

Quizplus · Accepted Answer

When the Fed increases the money supply in response to a successful wage push by workers, it is said to be accommodating, as it is accommodating the higher wages by increasing the money supply to keep the economy stable.

If the Fed Responds by Increasing the Money Supply in Response