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Which of the Following Is False

Question 56

Multiple Choice

Which of the following is false?


A) The Fed is concerned about minimizing inflation in output markets.
B) The Fed is concerned about the destabilizing effects of extremely volatile stock prices.
C) Volatile stock prices can affect the health and safety of the financial system.
D) Although drops in stock prices can be devastating to individual investors, they generally do not affect employment and output prices.

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