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Question #4: -Explain how the Fed uses open market operations to reduce the money supply. -Why do the Feds open market operations have a different

Question #4:

-Explain how the Fed uses open market operations to reduce the money supply.

-Why do the Feds open market operations have a different effect on money supply than do transactions between two depository institutions?

-Explain how the Fed's monetary policy may indirectly affect the prices of equity securities.

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