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    Modern Principles of Economics Study Set 2
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    Exam 32: Inflation and the Quantity Theory of Money
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    An Open Market Operation Occurs When
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An Open Market Operation Occurs When

Question 69

Question 69

Multiple Choice

An open market operation occurs when


A) banks loan funds to each other.
B) banks increase the reserve ratio.
C) the Fed buys or sells government bonds.
D) the Fed enforces regulations on the banking industry.

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