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reply to this statement The Feds can lower unemployment and increase inflation by implementing policies, specifically expansionary monetary policies. One way monetary policies leverage inflation
reply to this statement The Feds can lower unemployment and increase inflation by implementing policies, specifically expansionary monetary policies. One way monetary policies leverage inflation is by lowering interest rates. Small banks can take out short-term loans and in return, The Feds charge short-term interest rates on that loan, reducing the cost of borrowing. Another way Feds can increase inflation and lower unemployment is reduce the smaller bank's reserves to increase money supply overall
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