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What measures the fed should take to reduce the unemployment rate and expand the economy. Remember that the answer has to deal with monetary policy, so don't talk about taxes nor government's spending because these deal with fiscal policy.

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The solution is concise and to the point and explains the concepts very well. The solution is very easy to understand as well. Overall, an excellent response to the question being asked.

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In order to reduce the unemployment rate and expand the economy, the Fed could lower the interest rates. With the interest rates low, a lot of capital investments ...

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