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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    Suppose the Federal Reserve Lowers the Target on the Interest
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Suppose the Federal Reserve Lowers the Target on the Interest

Question 112

Question 112

Short Answer

Suppose the Federal Reserve lowers the target on the interest rate in the Federal Funds market. The Federal Reserve will _____ the money supply and aggregate demand will _____.

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