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Questions and Answers
A contractionary monetary policy by the Federal Reserve tends to increase borrowing rates.
A contractionary monetary policy by the Federal Reserve tends to increase borrowing rates.
True (A)
Contractionary monetary policy is often used to combat inflation by reducing spending.
Contractionary monetary policy is often used to combat inflation by reducing spending.
True (A)
Raising interest rates is a key feature of an expansionary monetary policy.
Raising interest rates is a key feature of an expansionary monetary policy.
False (B)
When the Federal Reserve raises interest rates, it discourages borrowing and spending.
When the Federal Reserve raises interest rates, it discourages borrowing and spending.
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A contractionary monetary policy is intended to stimulate economic growth.
A contractionary monetary policy is intended to stimulate economic growth.
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