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Imagine the economy is overheated, and high economic growth has led to low unemployment and a high inflation rate driven by increased consumer wealth. This
Imagine the economy is overheated, and high economic growth has led to low unemployment and a high inflation rate driven by increased consumer wealth. This might seem like a good thing; however, hyperinflation, or excessive inflation, could result as prices outpace incomes. (address each requirement below using a minimum of 125 words each). Discuss what adjustments you would make to the Discount Rate to slow down the economy and explain how this change affects the economy. Discuss how you would utilize Open Market Operations (the buying and selling of Treasury Notes and Bonds from banks) to slow down an overheated economy and explain how this mechanism works
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