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    Understanding Modern Economics
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    Exam 14: The Monetary Policy Approach to Stabilization  
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    If the Fed Uses Discretionary Monetary Policy to Smooth Out
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If the Fed Uses Discretionary Monetary Policy to Smooth Out

Question 49

Question 49

Short Answer

If the Fed uses discretionary monetary policy to smooth out fluctuations in the level of business activity, it would _________ the money supply during periods of unemployment.

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