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QUESTION 48 If the Fed buys government bonds in the open market, O the money supply increases and interest rates rise O the money supply

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QUESTION 48 "If the Fed buys government bonds in the open market," O the money supply increases and interest rates rise O the money supply decreases and interest rates rise the money supply increases and interest rates fall the money supply decreases and interest rates fall QUESTION 49 "An American buying shares of stock in Toyota, a Japanese automotive company, would increase America's net capital outflow." O True O False QUESTION 50 "According to the Fisher effect, an increase in the inflation rate would decrease nominal interest rates." True O False

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