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    Understanding Modern Economics
  4. Exam
    Exam 14: The Monetary Policy Approach to Stabilization  
  5. Question
    A Federal Reserve Purchase of Bonds on the Open Market
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A Federal Reserve Purchase of Bonds on the Open Market

Question 7

Question 7

True/False

A Federal Reserve purchase of bonds on the open market will supply the banking system with more reserves, and the likely result will be that banks will issue more loans.

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