Question: Determine which scenario would NOT call for the Fed to intervene. Annual inflation is around 2%. Prices are decreasing quickly; real value of the currency

Determine which scenario would NOT call for the Fed to intervene.

  • Annual inflation is around 2%.
  • Prices are decreasing quickly; real value of the currency is rising.
  • The economy is reaching hyperinflation.
  • Prices are increasing rapidly; real value of the currency is falling.

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