The fed fights inflation by

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The fed fights inflation by.

1. Lowering the long term real interest rate, which increase investment and spurs economic growth?

2. Decreasing the monetary base, which raises the interest rate and increases saving?

3. Raisin the federal funds rate, which raises interest rates and decreases aggregate

4. Lowering the federal funds rate, which lowers interest rates and decrease a aggregate demand?

Reference no: EM13836945

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