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When the Fed Sells Securities Through Open Market Operations,the Equation

Question 147

Multiple Choice

When the Fed sells securities through open market operations,the equation of exchange (under monetarist assumptions about V being stable) requires that either aggregate spending


A) Increases or prices decrease,or both.
B) Or prices decrease,or both.
C) Decreases or prices increase,or both.
D) Or prices increase,or both.

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