During 2017 the inflation rate increased slightly but remained in the "comfort zone" and the unemployment rate was low.
why might the fed decide to raise interest rates in this situation?
the fed might decide to raise interest rates .
a. the quantity of loanable funds demanded exceeded the quantity of loanable funds suppliedb. it thought that the rising inflation rate was a greater problem than unemploymentc. it thought that unemployment was a greater problem than the rising inflation rated. the quantity of money was growing too quickly

C. it thought that unemployment was a greater problem than the rising inflation rate

Explanation:

Through monetary policies tools, the Fed ensures both the unemployment rate and inflation rates are at the desired level. There is an inverse relationship between the rate of unemployment and the inflation rate. Economists argue that a high rate of unemployment poses a greater challenge than a high inflation rate.

If the inflation rate is within an acceptable level, central banks are more worried about the unemployment rate. When a person loses their job, it affects the well-being of the individual, his family, and friends. The person becomes a financial burden in the family. Co-workers develop fear which affects productivity.  Unemployment causes more misery to people than inflation.

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