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    Macroeconomics Study Set 40
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    Exam 14: Monetary Policy
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    If the Fed Sells Government Securities
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If the Fed Sells Government Securities

Question 115

Question 115

Multiple Choice

If the Fed sells government securities,


A) there will be no effect on the quantity of money.
B) commercial bank reserves will decrease.
C) commercial bank reserves will increase.
D) the government's debt will be decreased.

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