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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    The Sale of Government Securities by the Fed Leads to
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The Sale of Government Securities by the Fed Leads to

Question 135

Question 135

Multiple Choice

The sale of government securities by the Fed leads to


A) a contraction in bank lending.
B) an increase in the federal funds rate.
C) a decrease in bank reserves.
D) All of the above answers are correct.

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