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4. Suppose the Federal Reserve sells government bonds on the open market. a) Using the money market graph, find the short run effect of this

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4. Suppose the Federal Reserve sells government bonds on the open market. a) Using the money market graph, find the short run effect of this action on interest rates. What other tools of monetary policy could the Fed have used to get the same result? b) Using an aggregate demand/aggregate supply graph, find the short run effect of this action on output, unemployment, and prices. c) Using an aggregate demand/aggregate supply graph, find the long run effect of this action on output, unemployment, and prices

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