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    Essential Foundations of Economics Study Set 1
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    Exam 20: Fiscal Policy and Monetary Policy
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    The Fed Raises the Interest Rate When It
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The Fed Raises the Interest Rate When It

Question 75

Question 75

Multiple Choice

The Fed raises the interest rate when it


A) fears recession.
B) wants to increase the quantity of money.
C) fears inflation.
D) wants to encourage bank lending.
E) cannot change the quantity of money.

Correct Answer:

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