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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    If the Federal Reserve's Goal Is to Stabilize Aggregate Demand
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If the Federal Reserve's Goal Is to Stabilize Aggregate Demand

Question 153

Question 153

Short Answer

If the Federal Reserve's goal is to stabilize aggregate demand, then in response to an increase in money demand, the Federal Reserve will _____ the money supply.

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