Fed conduct contractionary monetary policy

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Reference no: EM13979231

In which of the following situations would the Fed conduct contractionary monetary policy?

A. That said believes that aggregate demand was a growing too slowly to keep up with the potential GDP.

B. The Fed fares that unemployment is climbing above the natural rate.

C. The Fed is concerned that aggregate demand would continue to exceed the growth and potential GDP.

D. The Fed is worried that deflation will become a problem.

Reference no: EM13979231

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