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Which of the Following Is an Example of Monetary Policy

Question 2

Multiple Choice

Which of the following is an example of monetary policy?


A) A bank raises the interest rate on loans to compensate for losses on bad loans.
B) Old currency is pulled out of circulation and replaced with new currency due to inflated old currency.
C) The Federal Reserve reduces the money supply in an effort to reduce inflation.
D) The legislature increases government spending to reduce unemployment.

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