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During a Depression,the Best Strategy of the Federal Reserve Is

Question 6

Multiple Choice

During a depression,the best strategy of the Federal Reserve is to


A) sell government bonds,to make low-risk,sound assets available for commercial banks to buy.
B) sell government bonds,in order to reduce the size of the government's deficits.
C) sell government bonds,in order to increase aggregate demand.
D) buy government securities.

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