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What should the fed do if the economy grows rapidly

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Reference no: EM132808861

Problem 1: What should the Fed do if the economy grows rapidly while inflation also rises to an annual rate of 7.5%?

Option 1: Tighten to increase interest rates.

Option 2: Push interest rates lower.

Option 3: Increase the money supply

Option 4: None of the above.

Reference no: EM132808861

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