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An Expansionary Monetary Policy Would ________ and Would Eventually Increase

Question 49

Multiple Choice

An expansionary monetary policy would ________ and would eventually increase the money supply.


A) reduce short-term interest rates
B) involve selling foreign-currency reserves in the foreign-exchange market
C) involve selling government bonds on the open market
D) increase short-term interest rates
E) involve increasing the target for the overnight interest rate

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