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6. Consider Figure 5.2. If the Fed conducts contractionary OMOs, the Federal Funds Market will move from point (a) C to A (b) B to

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6. Consider Figure 5.2. If the Fed conducts contractionary OMOs, the Federal Funds Market will move from point (a) C to A (b) B to D (c) B to C (d) A to D (e) Not enough information is given.

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Figure 5.2 The Federal Funds Market Federal Funds Rate i SA C B A DA Federal Funds

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