Between 2004 and 2005 the Federal Reserve raised interest rates 11 times. This is an example of

Question

Quizplus · Accepted Answer

The Federal Reserve raising interest rates is an example of monetary policy, not fiscal policy. The fact that they raised interest rates multiple times suggests that they were pursuing a contractionary policy, aimed at slowing down the economy and reducing inflationary pressures. Therefore the correct choice is D) contractionary monetary policy.

Between 2004 and 2005 the Federal Reserve Raised Interest Rates