A central bank finds itself in the following situation: the national
1. Inflation is increasing at a higher than desired rate.
2. The economy is growing too quickly, leading to higher prices and wages.
3. Unemployment is low and wages are increasing rapidly.
4. Consumer spending and investment activity are rising sharply in the economy.
5. Credit availability has become too loose and lenders have become more willing to lend money without proper risk management procedures in place.
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