1) When the economy is close to or at full employment why is it dif...

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1) When the economy is close to or at full employment why is it difficult for the Fed to decide whether or not to change its interest rate target in the federal funds market?

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Because the effect of monetary policy takes time, a good practice of monetary policy involves the good forecasting ability of the path of economy in the near future. When the economy is expected to heat up in...

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