3. Some argue that an increased money supply in the economy will increase inflation. However, the Fed argues that other pressures are driving down
inflation, including a high unemployment rate (9.6% at the time of the Fed's
announcement) and a downturn in the real estate market and manufacturing
output. Given these competing viewpoints, what would your recommendation
be for enacting a sound monetary policy of promoting stable economic growth,
maximizing employment, and stabilizing prices?