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5) When the Federal Reserve increases the money supply, people spend more because they now have more money. True or False? 6) The Fed can
5) When the Federal Reserve increases the money supply, people spend more because they now have more money. True or False? 6) The Fed can use contractionary monetary policy in an attempt to keep ination from increasing. True or False? 7) The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand. True or False
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