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    Macroeconomics Principles Study Set 1
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    Exam 12: Money Creation and the Federal Reserve
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    If the Fed Wants to Raise the Federal Funds Rate
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If the Fed Wants to Raise the Federal Funds Rate

Question 28

Question 28

Multiple Choice

If the Fed wants to raise the federal funds rate, it will _____ bonds, which _____ bond prices.


A) sell; lowers
B) sell; raises
C) buy; lowers
D) buy; raises

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