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Federal spending financed by a sale of Treasury bonds which are then purchased by the Fed

 

[removed]A.

causes the monetary base to rise, but inflation to decline.

[removed]B.

causes the monetary base to decline, but inflation to rise.

[removed]C.

has no net effect on inflation.

[removed]D.

causes both the monetary base and inflation to rise.

[removed]E.

causes both the monetary base and inflation to decline.

 

    • 10 years ago
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