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Suppose the Federal Reserve plans to take away the punch bowl by raising short-term interest rates throughout the economy. It will ordinarily implement this monetary
Suppose the Federal Reserve plans to take away the punch bowl by raising short-term interest rates throughout the economy. It will ordinarily implement this monetary policy by : quantitative easing. lowering the interest rate on excess reserves. engaging in dynamic open market operations where securities are sold to banks. engaging in defensive and temporary open market operations whereby it lends money to final institutions using reverse repos
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