Multiple Choice
Which of the following statements would be true if aggregate demand were increasing rapidly?
A) The central bank would need to sell foreign exchange.
B) The central bank would need to buy foreign exchange.
C) The central bank would need to borrow money from the government.
D) The central bank would need to buy government bonds.
E) The central bank would not change policy.
Correct Answer:

Verified
Correct Answer:
Verified
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