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    Macroeconomics Study Set 68
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    Exam 16: Interest Rates and Monetary Policy
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    The Federal Reserve Can Increase Aggregate Demand by
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The Federal Reserve Can Increase Aggregate Demand by

Question 260

Question 260

Multiple Choice

The Federal Reserve can increase aggregate demand by


A) reducing the money supply.
B) reducing the discount rate.
C) raising the reserve requirement.
D) selling government securities in the open market.

Correct Answer:

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