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7. A contractionary monetary policy decreases the money supply and the interest rate, which decreases investment and output. [True or False] 8. The Fed's duties

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7. A contractionary monetary policy decreases the money supply and the interest rate, which decreases investment and output. [True or False] 8. The Fed's duties include acting as a lender of last resort and supervising or regulating a variety of financial institutions. [True or False] 1

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