If the Federal Reserve decides to sell bonds, what effect with it have?     It will cause the money supply to decrease and inflation to fall It will cause the money supply to increase and employment to rise It will increase the average citizen’s tax rate We will enter into a deep economic depression

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
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Chapter17: The Trade-off Between Inflation And Unemploy
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If the Federal Reserve decides to sell bonds, what effect with it have?

 

 

It will cause the money supply to decrease and inflation to fall

It will cause the money supply to increase and employment to rise

It will increase the average citizen’s tax rate

We will enter into a deep economic depression

 
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