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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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    The Fed Can Influence the Money Supply by
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The Fed Can Influence the Money Supply by

Question 128

Question 128

Multiple Choice

The Fed can influence the money supply by


A) changing how much it lends to banks.
B) changing the interest rate it pays banks on the reserves they are holding.
C) using open-market operations.
D) All of the above are correct.

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