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    Principles of Economics Study Set 8
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    Exam 30: Money Growth and Inflation
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    When the Federal Reserve Injects Money into the Banking System
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When the Federal Reserve Injects Money into the Banking System

Question 44

Question 44

Short Answer

When the Federal Reserve injects money into the banking system, it initially causes an excess _____ of money. Equilibrium in the money market is reestablished through a(n) _____ in the price level.

Correct Answer:

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