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    Exam 19: A Macroeconomic Theory of the Open Economy
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    Under the Policy of Interest Rate Targeting Adopted by the Federal
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Under the Policy of Interest Rate Targeting Adopted by the Federal

Question 12

Question 12

Multiple Choice

Under the policy of interest rate targeting adopted by the Federal Reserve in the 1990s, the money supply is:


A) increased at a constant rate.
B) decreased at a constant rate.
C) held constant.
D) allowed to fluctuate.

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