An autonomous tightening of monetary policy occurs ...

Group of answer choices

when the economy is at full employment output level

when the Fed feels that future inflation is unusually low, and the Fed follows discretionary policy

when the Fed feels that future inflation is unusually high, and the Fed follows a policy rule.

when the Fed feels that future inflation is unusually high, and the Fed follows discretionary policy

Based on the Taylor Principle, a central bank's endogenous response of raising interest rates when inflation rises

Group of answer choices

shifts the monetary policy curve downward.

shifts the monetary policy curve upward.

causes a downward movement along the monetary policy curve.

causes an upward movement along the monetary policy curve.