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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    If the Interest Rate Is Below the Fed's Target,the Fed
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If the Interest Rate Is Below the Fed's Target,the Fed

Question 109

Question 109

Multiple Choice

If the interest rate is below the Fed's target,the Fed should


A) buy bonds to increase bank reserves.
B) buy bonds to decrease bank reserves.
C) sell bonds to increase bank reserves.
D) sell bonds to decrease bank reserves.

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