The Federal Reserve Bank is worried about COVID relief spending causing inflation andwants to reduce inflationary pressures.
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Question:
The Federal Reserve Bank is worried about COVID relief spending causing inflation andwants to reduce inflationary pressures. A. Describe how COVID relief spending could possibly cause inflation (the mechanism by which it could cause prices to go up). B.What policy tools could the Federal Reserve Bank use to reduce inflationary pressuresand how would they work? And C. describes how the actions you describe in parts A andB could affect the vehicle parts manufacturing Industry? Be as specific as possible.
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