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reserves and there is no cash held by the public. The Federal Reserve decides that it wants to reduce the money supply by 540 million

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reserves and there is no cash held by the public. The Federal Reserve decides that it wants to reduce the money supply by 540 million [Notez money supply is measured by M1 = Total Deposits + Cash]. a. If the Fed uses open market operations, would it buy or sell bonds? b. What quantity of bonds would the Fed buy or sell to accomplish the goal? Explain

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