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    Money and Banking Study Set 1
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    Exam 22: Is-Lm in Action
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    When the Fed Increases the Money Supply, the Currency Depreciates
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When the Fed Increases the Money Supply, the Currency Depreciates

Question 3

Question 3

True/False

When the Fed increases the money supply, the currency depreciates, nets exports rise and IS shifts to the right.

Correct Answer:

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