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Fed Sees Unemployment and Inflation Rising It is May 2008 and the Fed is confronted with a rising unemployment rate and rising inflation. Source: CNN, May 21, 2008. Explain the dilemma faced by the Fed in May 2008. Why might the Fed decide to cut the interest rate in the months after May 2008? Why might the Fed decide to raise the interest rate in the months after May 2008?

Reference no: EM131107910

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