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    Economics A Contemporary Introduction
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    Exam 16: Monetary Theory and Policy
  5. Question
    If Money Demand Increases and the Fed Attempts to Keep
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If Money Demand Increases and the Fed Attempts to Keep

Question 43

Question 43

Multiple Choice

If money demand increases and the Fed attempts to keep interest rates stable,then


A) the money supply will increase
B) the money supply will decrease
C) velocity will increase
D) velocity will decrease
E) the Fed will sell government securities

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