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If the Federal Reserve is targeting interest rates and money demand decreases, an appropriate policy response would be to: A. Increase reserve requirements. B. Decrease
If the Federal Reserve is targeting interest rates and money demand decreases, an appropriate policy response would be to:
A. Increase reserve requirements.
B. Decrease the discount rate.
C. Purchase U.S. Treasury securities through government bond dealers.
D. Decrease government spending.
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