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When the Fed Conducts Open Market Operations to Decrease the Monetary

Question 82

Multiple Choice

When the Fed conducts open market operations to decrease the monetary base,real GDP growth:


A) decreases only in the short run.
B) increases only in the short run.
C) decreases in both the short run and the long run.
D) increases in both the short run and the long run.

Correct Answer:

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