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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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    Figure 34-1 -Refer to Figure 34-1.If the Current Interest Rate Is 2
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Figure 34-1 -Refer to Figure 34-1.If the Current Interest Rate Is 2

Question 127

Question 127

Multiple Choice

Figure 34-1 Figure 34-1   -Refer to Figure 34-1.If the current interest rate is 2 percent, A) there is an excess supply of money. B) people will sell more bonds,which drives interest rates up. C) as the money market moves to equilibrium,people will buy more goods. D) All of the above are correct.
-Refer to Figure 34-1.If the current interest rate is 2 percent,


A) there is an excess supply of money.
B) people will sell more bonds,which drives interest rates up.
C) as the money market moves to equilibrium,people will buy more goods.
D) All of the above are correct.

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