If the Fed lowers its target for the federal funds rate, this indicates that A the Fed is pursuing an expansionary monetary policy. B the Fed is pursuing a contractionary monetary policy. C the Fed is attempting to combat inflation. D the Fed is concerned that the growth in aggregate demand will exceed potential GDP.

If the Fed lowers its target for the federal funds rate, this indicates that

A the Fed is pursuing an expansionary monetary policy.
B the Fed is pursuing a contractionary monetary policy.
C the Fed is attempting to combat inflation.
D the Fed is concerned that the growth in aggregate demand will exceed potential GDP.

 

 

Answer:

option A

A lowering of rates is expansionery monetary policy.

Asked on February 15, 2018 in economics.
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