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When the fed sells bonds (or bond options) on a larger scale than before from private banks, ceter paribus, a. The federal funds rate tends
When the fed sells bonds (or bond options) on a larger scale than before from private banks, ceter paribus,
a. The federal funds rate tends to increase and the fed is likely to keep inflation low
b.it tends to cause inflation
c.the money supply tends to increase
d.the money supply tends not to change
e.the federal funds rate tends to decrease and the fed is likely trying to fight recession
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