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drawing the appropriate supply-and-demand diagram. 6. An important way in which the Federal Reserve decreases the money supply is by selling bonds to the public.

drawing the appropriate supply-and-demand diagram.

6. An important way in which the Federal Reserve decreases the money supply is by selling bonds to the public. Using a supply-and-demand analysis for bonds, show what effect this action has on interest rates.

what will happen in interest rate and money supply ( will increase or decrease )

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