partD-2E - rates low to continue to stimulate employment...

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Click to edit Master subtitle style 3/2/10 The view on the current economic situation is that Low rates of inflation will allow the economy to better absorb shocks in the labor market, while keeping monetary policy an effective tool
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3/2/10 Economic Outlook The weak economy is putting downward pressure on wages and prices - Employees are experiencing wage cuts to keep their jobs - Businesses are cutting prices and growth margins to stimulate sales With the job market weak and wages tight,
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3/2/10 Keeping Inflation Low The Fed will continue to hold interest
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Unformatted text preview: rates low to continue to stimulate employment and allow the economy to grow albeit at a slow pace By keeping rates between 0 and .25 percent, it will continue to encourage consumers to borrow from banks 3/2/10 Can Inflation be contained? Many people still feel that rising inflation is inevitable given the budget deficit created by large government stimulus packages Expansionary monetary policy can lead to increased spending, rising prices of goods, and eventually inflation...
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partD-2E - rates low to continue to stimulate employment...

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