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Over the past years the Federal Reserve Bank has loosened the money supply by lowering interest rates and the bank reserve requirement (Federal Regulation D).

Over the past years the Federal Reserve Bank has loosened the money supply by lowering interest rates and the bank reserve requirement (Federal Regulation D). 1) What should have been the result of these actions and what actually happened? 2) Why do you believe the Fed acted as they did? 3) What actions should the Fed take now to bring the U.S. economy back to desired levels?

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