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A Decrease in the Money Stock by the Federal Reserve

Question 59

Multiple Choice

A decrease in the money stock by the Federal Reserve


A) shifts the supply of loanable funds to the left, decreasing interest rates.
B) shifts the demand for loanable funds to the left, increasing interest rates.
C) shifts the supply of loanable funds to the left, increasing interest rates.
D) shifts the supply of loanable funds to the right, increasing interest rates.

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