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    Principles of Economics Study Set 1
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    Exam 26: Stabilizing the Economy: The Role of the Fed
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    Refer to the Given Figure
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Refer to the Given Figure

Question 115

Question 115

Multiple Choice

Refer to the given figure. Refer to the given figure.   If the Federal Reserve wants to lower the interest rate to 3 percent, it must ________ the money supply to ________. A) increase; 300 B) decrease; 300 C) increase; 900 D) increase; 700 If the Federal Reserve wants to lower the interest rate to 3 percent, it must ________ the money supply to ________.


A) increase; 300
B) decrease; 300
C) increase; 900
D) increase; 700

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