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To boost the economy the Fed would want to 1)raise /lower the Fed Funds Rate. To do so, it would 2) buy/sell T-bills. By 3)
To boost the economy the Fed would want to 1)raise /lower the Fed Funds Rate. To do so, it would 2) buy/sell T-bills. By 3) buying/selling T-bills, the Fed would 4) increase/decrease the 5 )demand/supply of T -bills. This would 6) increase/decrease the price of the T-bill and therefore it would 7)increase /decrease the T- bill yield. Given that the T-bill yield is now 8) higher/lower a lending bank would have to charge a 9) higher/lower rate to another bank, which would lead to a 10)higher/lower Fed Funds rate.
please answer 1-10
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