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Business, 10.09.2019 23:30 CourtGard

Assume that you are the manager of a firm. you are concerned about a potential increase in interestrates because it would reduce the demand for your products. currently, economic growth is high, butannual inflation has increased from 3 percent to 5 percent within the last six months. the unemployment rate is very low and cannot go higher. the federal reserve (fed) is meeting next week to assess economic conditions and set monetary policy.
(a) given the current economic situation, should the fed adjust or not adjust economic policy? if so, how? if not, why?
(b) recently, the fed has allowed the money supply to expand beyond its long-term target range. does this affect your expectation of what the fed will decide at its upcoming meeting?

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