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1. Let's assume the economy is weaker, with GDP growth slowing to under 1%, and unemployment rising. How might the Federal Reserve act? What monetary

1. Let's assume the economy is weaker, with GDP growth slowing to under 1%, and unemployment rising. How might the Federal Reserve act? What monetary policy will they follow? What specific action will the Fed take? And what will the intended effect be on the money supply and interest rates? Finally, what macroeconomic variables will the Fed hope to affect by the action they are taking? Be specific for full credit

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