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What actions should the Fed take if it believes the economy is about to experien

    What actions should the Fed take if it believes the economy is about to experience a high rate of inflation? Now, let’s assume you are the President of the Fed and you have to make certain decisions in our economy. If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
    The money supply
    Interest rates
    Investment
    Consumption
    Net Exports
    The aggregate demand curve
    Real GDP
    The price level

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