Motivated the policymakers cautious behaviour

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In April 2000, the seasonally adjusted unemployment rate was 3.8%. By June 2001, the unemployment rate has increased to 4.5% yet the measures by the fedreal reserve tlo reduce short-term interest rates were taken in stages, and in fact the unemployment rate continued to rise. What might have motivated the policymakers' cautious behaviour?

Reference no: EM131196966

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