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    Principles of Economics Study Set 6
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    Exam 26: Monetary Policy and the Fed
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    If the Fed Purchases Federal Government Bonds on the Open
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If the Fed Purchases Federal Government Bonds on the Open

Question 17

Question 17

Multiple Choice

If the Fed purchases federal government bonds on the open market, bank reserves will ____, leading to a(n) _______ in the money supply.


A) decrease; decrease
B) increase; decrease
C) increase; increase
D) decrease; increase

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