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Assuming an Increase in Money Demand,then If the Federal Reserve

Question 25

Multiple Choice

Assuming an increase in money demand,then if the Federal Reserve


A) can keep the interest rate unchanged assuming that it changes the monetary base by the appropriate amount.
B) would have to aim below their previous money stock target.
C) would not have to cut taxes to keep output from falling.
D) All of the above
E) None of the above

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