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Question 5

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Use the following to answer questions .
Exhibit: Monetary Policy 1 Use the following to answer questions . Exhibit: Monetary Policy 1 -(Exhibit: Monetary Policy 1) By shifting the demand curve from D<sub>1</sub> to D<sub>2</sub>, the Fed is exercising A) contractionary monetary policy to lower interest rates. B) expansionary monetary policy to lower interest rates. C) contractionary monetary policy to increase interest rates. D) expansionary monetary policy to increase interest rates.
-(Exhibit: Monetary Policy 1) By shifting the demand curve from D1 to D2, the Fed is exercising


A) contractionary monetary policy to lower interest rates.
B) expansionary monetary policy to lower interest rates.
C) contractionary monetary policy to increase interest rates.
D) expansionary monetary policy to increase interest rates.

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