Suppose the economy is experiencing rising inflation and falling output. Which of the following statements best outlines the FED's monetary policy stance in this environment? Suppose the economy is experiencing rising inflation and falling output. Which of the following statements best outlines the FED's monetary policy stance in this environment? The FED can lower interest rates to keep inflation from rising further. The FED can contract money supply to fight rising unemployment at no cost to inflation. The FED can contract money supply to fight high inflation at the expense of possibly increasing unemployment. The FED can contract money supply to fight rising unemployment at the expense of higher inflation