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About to experience high rate of inflation

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Reference no: EM133223536

What actions should the Fed take if it believes the economy is about to experience a high rate of inflation? Now, let's assume you are the President of the Fed and you have to make certain decisions in our economy. If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:

The money supply

Interest rates

Investment

Consumption

Net Exports

The aggregate demand curve

Real GDP

The price level

Reference no: EM133223536

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