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Suppose That the Federal Reserve Conducts an Open Market Sale

Question 25

Multiple Choice

Suppose that the Federal Reserve conducts an open market sale. Everything else held constant,this will cause the demand for U.S. assets to ________ and the U.S. dollar will ________.


A) increase;appreciate
B) increase;depreciate
C) decrease;appreciate
D) decrease;depreciate

Correct Answer:

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