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during an expansion, the fed should use... an expansionary policy contractionary policy

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During an expansion, the Fed should use... an expansionary policy contractionary policy

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Horacio élite · Tutor durante 8 años
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During an expansion, the Federal Reserve (Fed) typically uses a contractionary policy to prevent the economy from overheating and to control inflation. This policy involves increasing interest rates and reducing the money supply, which helps to slow down economic growth and stabilize prices.