If the Fed raises its target for the federal fund rate, this indicates that the Fed...
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If the Fed raises its target for the federal fund rate, this indicates that the Fed is pursuing an expansionary monetary policy. the Fed is pursuing a contractionary monetary policy. the Fed is attempting to combat deflation. The Fed is concerned that the growth in aggregate demand is too slow to keep up with potential GDP. If the Fed raises its target for the federal fund rate, this indicates that the Fed is pursuing an expansionary monetary policy. the Fed is pursuing a contractionary monetary policy. the Fed is attempting to combat deflation. The Fed is concerned that the growth in aggregate demand is too slow to keep up with potential GDP.
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