What does fed do to the money supply if it wants to shrink

Reference no: EM133336564

Question: What does the Fed do to the money supply if it wants to shrink, or "contract", economic activity? What does the Fed do to the money supply if it wants to grow, or "expand", economic activity?

Recently we have seen inflation increase rapidly. What has the Fed done to interest rates in order to combat inflation?

Reference no: EM133336564

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