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SXR D XR XR Please answer the next question based on the Federal Funds Market depicted above. Notice that the current rate is equal to
SXR D XR XR Please answer the next question based on the Federal Funds Market depicted above. Notice that the current rate is equal to the target rate. 28. Suppose the demand for XR decreases. Which of the following policies would work toward defending the target rate? A. The FED raises the rr and buys bonds. B. The Fed lowers the rr and sells bonds. C. The Fed raises the rr and sells bonds. D. The Fed lowers the rr and buys bonds. E. None of the above
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