6. An important way which the Federa! Reserve decreases the money supply is by selling botuls to...

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6. An important way which the Federa! Reserve decreases the money supply is by selling botuls to the public. Using a supply and demand ara&sis for bonds, show What effect this action has on inter-

est rates.

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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