What can we expect from the federal reserve bank if it seeks to move the economy in the direction of? long-run macroeconomic? equilibrium?

QUESTION POSTED AT 29/05/2020 - 12:39 AM

Answered by admin AT 29/05/2020 - 12:39 AM

The Federal Reserve will implement a contractionary monetary policy. This is a form of policy being used to deal with economic inflation that usually involves with the declining of the supply of money in the economy, this is to uplift the cost of borrowing the will result for the decrease of GDP. 
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