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If the Fed Sterilizes the Purchase of Foreign Assets

Question 22

Multiple Choice

If the Fed sterilizes the purchase of foreign assets,


A) its assets and liabilities rise by the same amount.
B) its assets and liabilities fall by the same amount.
C) the composition of its assets changes, but its liabilities are unaffected.
D) the composition of its liabilities changes, but its assets are unaffected.

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