Explain why the rise in oil prices in 2008 created a particularly difficult situation for Federal Reserve policymakers, who were already trying to fight off the financial crisis that started in 2007.

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box.

check all that apply

• Higher oil prices put upward pressure on inflation.unanswered
• The Fed could not simultaneously combat inflation without damaging economic growth.unanswered
• The financial crisis increased economic uncertainty.