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Cuba Cuba
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9 years ago
If the economy's resources are fully employed and prices are starting to rise, the Fed can ________ the money supply in an attempt to reduce inflationary pressure. If this action is well-calculated, output will ________.
A) increase; rise
B) increase; remain close to its potential level
C) decrease; remain close to its potential level
D) decrease; fall
Textbook 
Economic Analysis of Social Issues

Economic Analysis of Social Issues


Edition: 1st
Author:
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IloveChiIloveChi
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9 years ago
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Cuba Author
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#2
9 years ago
I have a major exam next week. Thank you for taking the time to answer. Problem solved.
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#3
9 years ago
Wasn't so hard, referencing the textbook helped.
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