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When a Major Negative Aggregate Demand Shock Hits the Economy,a

Question 238

Multiple Choice

When a major negative aggregate demand shock hits the economy,a central bank can "maintain market confidence" by:


A) raising the Federal Funds rate.
B) buying stocks in the stock market.
C) selling Treasury securities in the open market.
D) promising to increase the growth rate of money if the economy worsens further.

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