QUESTION 23 Suppose the Fed sells $77 billion worth of bonds to a primary dealer. Reserves in the banking system (Hint the following answers talk about the Fed may try to. That part is about the policy intention of the Fed. Whether the Fed can accomplish their goal depends on many factors.) decrease by more than $77 billion. The Fed may try to raise the interest rate through this transaction Increase by more than $77 billion. The Fed may try to lower the interest rate through this transaction decrease by $77 billion. The Fed may try to raise the interest rate through this transaction. Increase by $77 billion. The Fed may try to raise the interest rate through this transaction increase by 577 billion. The Fed may try to lower the interest rate through this transaction QUESTION 24 When short-term rates are low, they are expected to rise to some normal level, while when short-term rates are high, they will be expected to fall in the future. This pattern is called mean reversion which theory theories) can explain the mean reversion? O market segmentation theory pure expectations theory O liquidity premium theory O both market segmentation theory and pure expectations theory O both pure expectations theory and Iquidity premium theory