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Using a supply and demand graph of the market for money, show the effects on the nominal interest rate if the Fed takes the following
Using a supply and demand graph of the market for money, show the effects on the nominal interest rate if the Fed takes the following monetary policy actions: a. The Fed conducts open-market sales of government bonds to the public. (3 points) b. The Fed conducts open-market purchases of government bonds from the public. (3 points) c. The Fed decreases the reserve requirements for commercial banks. (3 points) d. The Fed increases the reserve requirements for commercial banks.
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