Explain fed best action for meeting president objectives

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Reference no: EM132226457

Suppose that inflation is rising toward 5 percent a year, and the Fed, Congress, and the White House are discussing ways of containing inflation without damaging employment and output. The President wants to cut aggregate demand but to do so in a way that will give the best chance of keeping investment high to encourage long-term economic growth.

Explain the Fed’s best action for meeting the President’s objectives.

Reference no: EM132226457

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