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If the Federal Reserve Board Wants to Increase Aggregate Demand

Question 33

Multiple Choice

If the Federal Reserve Board wants to increase aggregate demand in the economy, it


A) lowers tax rates to put more money in people's pockets.
B) increases military spending.
C) increases the money supply and lowers interest rates.
D) denies the president the right to regulate businesses for a short period.
E) manipulates supply and demand.

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