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What is the effect of the Fed's purchases and sales of bonds? Multiple choice question. The Fed buys and sells small quantities of bonds, which
What is the effect of the Fed's purchases and sales of bonds? Multiple choice question. The Fed buys and sells small quantities of bonds, which influences the equilibrium price but not the interest rates on bonds. The Fed buys and sells small quantities of bonds to avoid disrupting the equilibrium price and interest rates on bonds. The Fed buys and sells large quantities of bonds to influence the equilibrium price and interest rates on bonds. The Fed buys and sells large quantities of bonds, which influences the equilibrium price but not the interest rates on bonds
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