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 cut interest rates as that would decrease the cost of goods produced.
OTo hike interest rates as that would increase the -oost of goods produced.
010 hike interestraties that wotuld decrease the cost of goods produced.
Here is the output gap in the U . S . in early 1

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