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1. a) Explain how the FED would use open market operations to increase the money supply of the US economy? b) What are the two

a) Explain how the FED would use open market operations to increase the money supply of the US economy?

b) What are the two main tools of monetary policy when the federal funds interestrate is targeted at the zero lower bound?

c) Explain briefly how the FED keeps the federal funds rate close to zero.

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