What would be the appropriate monetary policy during a low inflation and steady gdp growth?

The Federal Reserve is the body of the federal administration responsible for conducting monetary policy, which is a very important instrument for heating or cooling the economy, as the Federal Reserve deems necessary.

Monetary policy consists basically of two factors: interest rate and money supply.

In situations of low inflation and low growth dynamics, the increase in the money supply and the decrease in interest rates are used as expansionary monetary policies aimed at accelerating the economy.

In situations of inflation and economic warming, the Federal Reserve does the opposite, lowers the money supply and raises interest rates to cool economic activity and inflation.

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explanation:

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