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    Principles of Macroeconomics Study Set 11
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    Exam 10: The Money Supply and the Federal Reserve System
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    What Are the Two Reasons That the Federal Reserve Acts
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What Are the Two Reasons That the Federal Reserve Acts

Question 66

Question 66

Essay

What are the two reasons that the Federal Reserve acts as a "lender of last resort?"

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First it provides funds to banks that ar...

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