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Figure 11-1

Question 6

Multiple Choice

Figure 11-1 Figure 11-1 -Refer to Figure 11-1. If the Fed wants to achieve the results shown in Panel (a) , it should A) raise the discount rate. B) increase reserve requirements. C) sell government bonds in the open market. D) buy government bonds in the open market.
-Refer to Figure 11-1. If the Fed wants to achieve the results shown in Panel (a) , it should


A) raise the discount rate.
B) increase reserve requirements.
C) sell government bonds in the open market.
D) buy government bonds in the open market.

Correct Answer:

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