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Which of the Following Sequence of Events Follows an Open

Question 195

Multiple Choice

Which of the following sequence of events follows an open market purchase by the Fed?

A) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓
B) r↑ ⇒ I↑ ⇒ AE↓ ⇒ Y↑
C) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑
D) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↓

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