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-In the Above Figure, Suppose That the Economy Was Initially

Question 139

Multiple Choice

  -In the above figure, suppose that the economy was initially in an equilibrium at point D. Where would the economy move if the Fed makes an open market purchase of government securities? A)  A B)  B C)  C D)  D, that is, the economy would not change its equilibrium.
-In the above figure, suppose that the economy was initially in an equilibrium at point D. Where would the economy move if the Fed makes an open market purchase of government securities?


A) A
B) B
C) C
D) D, that is, the economy would not change its equilibrium.

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