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    Economics Principles and Policy Study Set 2
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    Exam 29: Monetary Policy: Conventional and Unconventional
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    An Increase in the Reserve Supply
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An Increase in the Reserve Supply

Question 181

Question 181

Multiple Choice

An increase in the reserve supply


A) will result in inflation if the unemployment rate is high.
B) causes interest rates to rise.
C) shifts the aggregate demand curve inward.
D) will probably cause inflation if the economy is at potential GDP.

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