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    Exam 31: The Debate Over Monetary and Fiscal Policy
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    When the Fed Increases the Money Supply, Interest Rates
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When the Fed Increases the Money Supply, Interest Rates

Question 95

Question 95

Multiple Choice

When the Fed increases the money supply, interest rates


A) rise, causing velocity to fall.
B) fall, causing velocity to fall.
C) rise, causing velocity to rise.
D) fall, causing velocity to rise.

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