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Answer the following three questions dealing with monetary policy. (a)Explain how the Federal Reserve might carry out a tight monetary policy. ANS: (b)Explain how the

Answer the following three questions dealing with monetary policy.

(a)Explain how the Federal Reserve might carry out a "tight" monetary policy.

ANS:

(b)Explain how the Federal Reserve might carry out an "easy" monetary policy.

ANS:

(c)How would each of the policies affect the equilibrium interest rate?

ANS:

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