From 1999-01, the U.S. Federal Reserve _____ nominal interest rates, and it _____ the policy in 2001 because of concerns over _____.
A) lowered; continued; recession
B) raised; reversed; inflation
C) raised; reversed; recession
D) lowered; continued; inflation

Question

Quizplus · Accepted Answer

The U.S. Federal Reserve raised nominal interest rates from 1999 to 2000 to curb inflation. However, in 2001, due to concerns over a potential recession, the Fed reversed this policy by lowering interest rates.