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13. Fiscal stimulus is stronger in an open economy because the greater aggregate demand resulting from the

stimulus raises interest rates.

True / False

14. The main Federal Reserve liabilities are the federal reserve deposits of commercial banks.

True / False

15. In order to absorb $90 billion of reserves from the banking system when the reserve ratio is 0.10, the Fed needs to sell $900 billion worth of bonds to primary dealers.

True / False

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