The Federal Open Market Committee (FOMC) of the Federal Reserve monitors inflationary pressures when deciding on the target range for the federal funds rate. Which one of the following pieces of economic data is most likely to persuade the Committee to raise the target interest rate?
A continuous decrease in monthly housing starts and construction activity
Data showing a sharp acceleration in average hourly wage growth
An increase in the inventory-to-sales ratio across major retailers
A steady rise in the household saving ratio
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.