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When the Fed Fears Inflation, the Fed ________ Government Securities

Question 18

Multiple Choice

When the Fed fears inflation, the Fed ________ government securities, so that the federal funds rate ________ and the quantity of money ________.

A) sells; falls; decreases
B) sells; rises; decreases
C) sells; falls; increases
D) buys; falls; increases
E) buys; rises; decreases

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