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Stabilizing a struggling economy

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Reference no: EM131536694

"Stabilizing a Struggling Economy"

Please respond to the following:

  • In times of a struggling economy, should the Federal Reserve undertake expansionary or contractionary monetary policy to help stabilize the economy? What tools would they use to accomplish this? 
  • Next, explain how the monetary policy you recommended above will impact the interest rate, inflation rate, aggregate demand, and real GDP.

Reference no: EM131536694

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