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In the Early 1980s,the Federal Reserve Pursued a Tight Monetary

Question 161

Multiple Choice

In the early 1980s,the Federal Reserve pursued a tight monetary policy.All else being equal,the impact of that policy was to ____ interest rates in the United States relative to those in Europe and cause the dollar to ____ against European currencies.


A) Decrease,depreciate
B) Decrease,appreciate
C) Increase,depreciate
D) Increase,appreciate

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