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    Principles of Macroeconomics Study Set 2
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    Exam 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    If the Federal Reserve Decided to Lower Interest Rates, It
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If the Federal Reserve Decided to Lower Interest Rates, It

Question 402

Question 402

Multiple Choice

If the Federal Reserve decided to lower interest rates, it could


A) buy bonds to lower the money supply.
B) buy bonds to raise the money supply.
C) sell bonds to lower the money supply.
D) sell bonds to raise the money supply.

Correct Answer:

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