Question: Here is the output gap in the U . S . in early 1 9 7 5 . What was likely the Fed interest rate

Here is the output gap in the U.S. in early 1975. What was likely the Fed interest rate policy?
To hike interest rates as that would deciease the cost of goods produced.
20 To cut interest rates as that would decrease the cost of goods produced.
To hike interest rates as that wo fid increase the cost of goods produced.
Here is the output gap in the U . S . in early 1

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