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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    If the Federal Reserve Increases the Money Supply,then Initially People
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If the Federal Reserve Increases the Money Supply,then Initially People

Question 138

Question 138

Multiple Choice

If the Federal Reserve increases the money supply,then initially people want to


A) sell bonds so the interest rate rises.
B) sell bonds so the interest rate falls.
C) buy bonds so the interest rate rises.
D) buy bonds so the interest rate falls.

Correct Answer:

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