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The fed wants to decrease the money supply when the economy is booming and inflationary pressures ________ in the economy.

User Capm
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Hey there.......


the answer is .........
raises

hope it helps


extra info: The inflation gap is a Negative function of the unemployment gap. Expectations eliminate the effectiveness of the policy.

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When decelerating below long-run trend growth, stimulate it with expansionary policy.
User Rupesh Shinde
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