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  3. Study Set
    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy
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    Suppose There Were a Large Decline in Net Exports
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Suppose There Were a Large Decline in Net Exports

Question 35

Question 35

Multiple Choice

Suppose there were a large decline in net exports.If the Fed wanted to stabilize output,it could


A) buy bonds to raise interest rates.
B) buy bonds to lower interest rates.
C) sell bonds to raise interest rates.
D) sell bonds to lower interest rates.

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