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Determining the most appropriate tool or policy mix involves considering the current state of the economy, the prevailing inflationary pressures, unemployment rates, and growth prospects.
Determining the most appropriate tool or policy mix involves considering the current state of the economy, the prevailing inflationary pressures, unemployment rates, and growth prospects. A balanced approach, often a combination of different tools, might be necessary to achieve the desired economic outcomes without causing undue instability or long-term adverse effects. The Fed regularly assesses economic indicators to adjust its policies accordingly and strives for a balanced monetary policy that supports sustainable economic growth while managing inflation and employment levels
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