During inflationary periods, the Federal Reserve can be expected to

Name: During inflationary periods, the Federal Reserve can be expected to
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During inflationary periods, the Federal Reserve typically tries to raise interest rates to decrease the money supply and reduce aggregate demand. By raising interest rates, borrowing becomes more expensive and consumers and businesses are less likely to spend or invest, leading to a decrease in demand pressure on prices.

During Inflationary Periods, the Federal Reserve Can Be Expected to