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Quiz
Related Lesson
Monetary Policy: The Best Case Scenario
Knowledge Check
Knowledge Check
Question 1 of 3
Imagine you’re in charge of the Federal Reserve and the economy experiences the following AD shocks. Your job is to neutralize them. Identify all shocks below where the best course of action is to increase the money supply.
Investors become pessimistic about future profit opportunities.
State governments increase spending on schools, prisons, and health care.
The federal government passes a national sales tax.
The federal government increases military spending.
a and c only.
a, b, and c only.
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Course
Principles of Macroeconomics
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