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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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    If the Interest Rate Is Below the Fed's Target,the Fed
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If the Interest Rate Is Below the Fed's Target,the Fed

Question 133

Question 133

Multiple Choice

If the interest rate is below the Fed's target,the Fed would


A) buy bonds to increase the money supply.
B) buy bonds to decrease the money supply.
C) sell bonds to increase the money supply.
D) sell bonds to decrease the money supply.

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