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Question Topic Monetary Policy and The Federal Reserve In January 2001, the Fed began to aggressively loosen monetary policy : a. Why did the Fed

Question Topic Monetary Policy and The Federal Reserve

In January 2001, the Fed began to aggressively loosen monetary policy:

a. Why did the Fed loosen monetary policy and how might it have done so?

b. Using the IS/LM (Investment and Savings/ Liquidity and Money) model, what would have been the predicted effect on investment and output?

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