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Statement I: If the Fed Pursued a Tight Money Policy,investors

Question 27

Multiple Choice

Statement I: If the Fed pursued a tight money policy,investors all over the world would be attracted to the higher interest rates they could earn by purchasing U.S.bonds,corporate bonds,and other assets.
Statement II: Tight money tends to lower our net exports.


A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

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