The Federal Reserve Act of 2000 instructs the Fed to pursue its goals by maintain[ing] long-run growth

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The Federal Reserve Act of 2000 instructs the Fed to pursue its goals by “maintain[ing] long-run growth of the monetary and credit aggregates commensurate with the economy’s long-run potential to increase production.”

a. Has the Fed followed this instruction?

b. Why might the Fed increase money by more than the potential to increase production?

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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Question Posted: Jan 27, 2024 10:04 PM

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The Federal Reserve Act of 2000 instructs the Fed to pursue its goals by maintain[ing] long-run growth

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Economics

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