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1. Please explain how FED increases the money supply. Please explain what FED has been doing recently with respect to the money supply. 2. WHY

1. Please explain how FED increases the money supply. Please explain what FED has been doing recently with respect to the money supply.

2. WHY was FED shrinking the money supply? HOW was FED shrinking the money supply?

3. How does FED open market operations work? Why does FED resort to open market operations?

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