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    Exam 13: An Introduction to Interest Rate Determination and Forecasting
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    If a Central Bank Sells Government Securities as Part of Implementing
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If a Central Bank Sells Government Securities as Part of Implementing

Question 76

Question 76

Multiple Choice

If a central bank sells government securities as part of implementing monetary policy:


A) the liquidity in the financial system will increase.
B) interest rates are likely to increase.
C) spending in the economy is likely to increase.
D) the price of the currency is likely to depreciate.

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