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The demand curve and supply curve for one year discount bonds with a face value of 51.000 are represented by the following equations Price -0.8uantity

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The demand curve and supply curve for one year discount bonds with a face value of 51.000 are represented by the following equations Price -0.8uantity 1,120 B Price - Quantity +680 Suppose that, as a result of monetary policy actions, the Federal Reserve sells 110 bands that it holds, Assume that dond demand and money demand are held constant. Which of the following statemente? OA the Fed increases the supply of bonds in the market by 110, at any given price, the bond supply equation will become Price Quantity 790 OB the Fed decreases the supply of bonds in the market by 110 at any given price, the bond supply equation will become Price Quantity 770 O the Fed decreases the supply of bonds in the market by 110, at any given price, the bend supply equation will become Price Quantity. 830 o the Fed increases the supply of bonds in the market by 150. at any given prion, the band supply union will become Price Quantity 570 Calculate the effect on the equilibrium interest rate in this market, as a result of the Federal Reserve adion The expected interest rate on a one-year dhcount bond will increase Round your intermediate calculations to the nearest whole number Round your final arower to the deci pleme)

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