The Federal Reserve raises the federal funds rate. This action is an example of:

The Federal Reserve raises the federal funds

Multiple choice — select the best answer

AContractionary fiscal policy
BExpansionary monetary policy
CContractionary monetary policy
DExpansionary fiscal policy

✓ Correct answer: C. Contractionary monetary policy Monetary policy is set by the Federal Reserve, and raising the federal funds rate increases borrowing costs to slow spending and reduce inflationary pressure, making it contractionary monetary policy.

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Topic: Uniform Investment Adviser Law

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The Federal Reserve raises the federal funds rate. This action is an example of:

Related questions — Uniform Investment Adviser Law

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