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Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned about open market operations, determine whether the noted actions
Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned about open market operations, determine whether the noted actions below coincide with expansionary monetary policy or contractionary monetary policy. In a few sentences explain how.
Action: Government securities are sold by the Fed.
a)Expansionary
b)Contractionary
Action: The federal funds rate decreases.
a)Expansionary
b)Contractionary
Action: The money supply increases.
a) Expansionary
b) contractionary
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