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Contractionary monetary policy is a strategy the Fed adopts when the economy is overheated, inflation is high, and unemployment is low. If this seems familiar,
Contractionary monetary policy is a strategy the Fed adopts when the economy is "overheated," inflation is high, and unemployment is low. If this seems familiar, it should because this is what occurred in 2022. Imagine you are the Fed Chairperson; choose one of the three tools at the Fed's disposal to "cool down" the economy; explain what it is and why you are choosing it and not the other two. Explain how the use of this tool would "cool down" an overheated economy
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