This is an excerpt from the Federal Reserve Open Market Committee's policy statement from April 29, 2020.Read the excerpt and answer the question.

"The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term. In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals."

The Fed's statement describes an economy in deep recession, and adopted a policy to maintain the federal funds rate at a constant level.Why did they adopt this policy?

a.The Fed has been raising the federal funds rate to prevent inflation from rising.This strategy is working, so they decided to hold the rate constant for the next six weeks.

b.The federal funds rate is already near zero, as low as it can go.Monetary policy is as expansionary as can be.

c.The federal funds rate is already near one-quarter percent, as high as it can go.Monetary policy is as contractionary as can be.

d.The Fed is concerned that further reductions in the federal funds rate would increase inflation, so they decided not to add to expansionary monetary policy.

Here are two sentences from the Federal Reserve Open Market Committee's policy statement from April 29, 2020.Read the sentences and answer the question.

"The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals."

"In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective."

These sentences describe the Fed's "dual mandate."The Fed's goals for the economy are

a.Stable inflation near 2%, with output at or above potential, meaning an unemployment rate at 5% or lower.

b.Stable real GDP growth near 2%, with unemployment at or below potential, and stable prices with the inflation rate near zero.

c.Stable prices, meaning an inflation rate near zero, with output as far about potential, and an unemployment rate as far below 5%, as can be attained.

d.Stable unemployment near 2%,with output at or above potential, meaning an inflation rate of 5% or lower.