During 1997/1998, with strong economic growth and unemployment decreasing, Alan Greenspan and the Fed were faced with a dilemma. What was this dilemma?

Question

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The dilemma faced by Alan Greenspan and the Fed during 1997/1998 was whether to tighten monetary policy to slow down the rapidly growing economy. The strong economic growth and decreasing unemployment indicated an overheating of the economy, which would lead to inflation. To combat this, the Fed had to decide whether to raise interest rates to slow economic growth and keep inflation in check. Therefore, the best choice is A.

During 1997/1998, with Strong Economic Growth and Unemployment Decreasing, Alan