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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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    Suppose That the Federal Reserve Is Concerned About the Effects
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Suppose That the Federal Reserve Is Concerned About the Effects

Question 17

Question 17

Multiple Choice

Suppose that the Federal reserve is concerned about the effects of falling stock prices on the economy.What could it do?


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

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