Question: please provide detail on how to get to answer 2. We're not likely to see a really tight monetary policy; he made clear that the
please provide detail on how to get to answer

2. "We're not likely to see a really tight monetary policy; he made clear that the central bank is following an 'intentionally moderate' monetary policy in order to 'minimize the strains involved in adjusting to a less inflationary economy. He points to the 'awkward economic fact that in the short run anti-inflationary policies tend to restrain output more than prices'." In plain language this means that the central bank is adopting a policy of: a) raising interest rates markedly to cut back on output b) gradually reducing the rate of growth of the money supply c) attacking unemployment with a policy of gradually increasing the money growth rate d) increasing the money supply at a low steady rate equal approximately to the real rate of growth of the economy
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