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AP® Macroeconomics

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Moderate

Fiscal and Monetary Policy

APMACR-O3BLE0

Assume Congress lowered taxes.

If the FED wanted to COUNTERACT that move, then which of the following best describes what the FED would do?

A

Buy Bonds.

B

Lower rate at the Discount Window.

C

Lower the Federal Funds Target Rate.

D

Raise the Reserve Requirement.

E

Decrease government spending.