In September, 2006 the overall CPI fell by 0.5 percent but the core CPI edged higher just

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In September, 2006 the overall CPI fell by 0.5 percent but the core CPI edged higher just enough to make inflation a concern. What is the Fed's most likely response to a situation like this one? Will the Fed tighten or ease? Explain the Fed's action and its consequences for real GDP and the inflation rate.
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Foundations of Macroeconomics

ISBN: 978-0132831000

6th edition

Authors: Robin Bade, Michael Parkin

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