Question: 6 . Suppose the US Fed Reserve decides to implement a contractionary or expansionary monetary policy to reduce inflation and assume that the Fed pursues

6 .

Suppose the US Fed Reserve decides to implement a contractionary or expansionary monetary policy to reduce inflation and assume that the Fed pursues a flexible exchange rate regime.

.

How would such a policy affect the equilibrium interest rate?

6 .

Suppose the US Fed Reserve decides to implement a contractionary or expansionary monetary policy to reduce inflation and assume that the Fed pursues a flexible exchange rate regime.

.

How would such a policy affect the equilibrium interest rate?

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