Question: Use the Three-Sector Model to explain the effects monetary policy had on the U.S. economy while the Fed was trying to fix the U.S. economy

Use the Three-Sector Model to explain the effects monetary policy had on the U.S. economy while the Fed was trying to fix the U.S. economy and financial system. Assume the United States had highly mobile international capital markets and a flexible exchange rate. What problems connected with Fed policies are likely to be with the United States for years?

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