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QUESTION

Assume you are a member of the Federal Open Market Committee. The economic data indicate that inflationary pressures are growing in the economy due...

Assume you are a member of the Federal Open Market Committee. The economic data indicate that inflationary pressures are growing in the economy due to an unsustainable increase in the housing market. Graph what this situation looks like.

B.  What type of monetary policy would you pursue? What three steps could do to appropriately move the federal funds rate in the desired direction?

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