The frs began a contractionary monetary policy in 1979 at, Business Economics

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The frs began a contractionary monetary policy in 1979 at

Question: 1. The FRS began a contractionary monetary policy in 1979. At the same time, Congress increased spending, financing the deficit by borrowing from the public. How would this combination of policies affect a closed economy? How would it affect an open economy with flexible exchange rates? What is the difference, if any, between your two answers? Explain.

2. Should the FRS defend the dollar? Defend your answer.

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