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Exhibit 16-3 -In the Situation Shown in Exhibit 16-3, How Could the How

Question 125

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Exhibit 16-3 Exhibit 16-3 -In the situation shown in Exhibit 16-3, how could the Fed return the economy to potential output? A) decrease government spending B) decrease excess reserves in the banking system C) sell U.S. government bonds to banks D) increase the discount rate E) lower the required reserve ratio
-In the situation shown in Exhibit 16-3, how could the Fed return the economy to potential output?


A) decrease government spending
B) decrease excess reserves in the banking system
C) sell U.S. government bonds to banks
D) increase the discount rate
E) lower the required reserve ratio

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