In traditional monetary policy, if the Fed targeted a lower federal funds rate, then it was pursuing a restrictive monetary policy.

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In traditional monetary policy, if the Fed targeted a lower federal funds rate, then it was pursuing an expansionary monetary policy, as a lower federal funds rate typically leads to lower borrowing costs and increased spending and investment. Conversely, raising the federal funds rate is typically associated with a restrictive monetary policy, as it leads to higher borrowing costs and decreased spending and investment.

In Traditional Monetary Policy, If the Fed Targeted a Lower