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If the Demand for Money Decreases,a Constant Interest Rate Policy

Question 78

Multiple Choice

If the demand for money decreases,a constant interest rate policy requires the Fed to


A) consult with leaders in the financial markets to see whether it should introduce credit controls
B) watch to see whether the investment spending decreases
C) move quickly to prevent a recession
D) decrease the supply of money
E) decrease the interest rate.

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