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Argues after reading and analyzing well the following premises about market failures and monetary policy of the Central Bank (Federal Reserve of the United States):

Argues after reading and analyzing well the following premises about market failures and monetary policy of the Central Bank (Federal Reserve of the United States):

  1. If the income of the economy increases and the Central Bank does not want to increase the money supply by buying government bonds, although it wants to continue supporting economic growth, then it decides that interest rates should be lowered. Graphic and concrete explanation.

  1. If the money supply increases in the money market and the economy, in response the Central Bank decides to stop the sale of government bonds and that therefore the interest rate must be raised to balance the money market. Graph andconcreteexplain.

  1. Give to me all the sources of information.

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