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    Economics Principles and Policy Study Set 2
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    Exam 32: Budget Deficits in the Short and Long Run
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    The Federal Reserve May Choose to Monetize the Debt in Order
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The Federal Reserve May Choose to Monetize the Debt in Order

Question 97

Question 97

Multiple Choice

The Federal Reserve may choose to monetize the debt in order to


A) reduce the burden of the national debt.
B) shift the supply curve of money outward.
C) shift the demand curve for money inward.
D) reduce the volume of reserves in commercial banks.

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