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Which of the Following Is FALSE

Question 56

Multiple Choice

Which of the following is FALSE?


A) An expansionary monetary policy is used to combat inflation.
B) The Fed serves to regulate the money supply and also to provide a system for check clearing between banks.
C) In the long run, higher rates of money growth lead to higher rates of inflation.
D) An increase in interest rates will lead to lower bond prices.

Correct Answer:

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