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Figure 34-9 -Refer to Figure 34-9.Suppose the Economy Is Currently at Point

Question 5

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Figure 34-9 Figure 34-9 -Refer to Figure 34-9.Suppose the economy is currently at point A.To restore full employment,the Federal Reserve should A) purchase government bonds,which will increase the money supply. B) purchase government bonds,which will reduce the money supply. C) sell government bonds,which will increase the money supply. D) sell government bonds,which will reduce the money supply.
-Refer to Figure 34-9.Suppose the economy is currently at point A.To restore full employment,the Federal Reserve should


A) purchase government bonds,which will increase the money supply.
B) purchase government bonds,which will reduce the money supply.
C) sell government bonds,which will increase the money supply.
D) sell government bonds,which will reduce the money supply.

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