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The Fed Bought Several Billion Dollars' Worth of U

Question 233

Multiple Choice

The Fed bought several billion dollars' worth of U.S. government securities. The purpose of this action is to


A) decrease the size of the national debt.
B) improve its financial position by investing in relatively safe interest-earning assets.
C) stimulate the economy by increasing the amount of money in circulation.
D) drive up interest rates to cool off inflationary pressures.

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