Bonds in open market operations

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Reference no: EM13981963

Explain how each of the following will affect money supply, money demand, the interest rate, the price level, and real GDP. Use 2 graphs for each (one showing what happens to the money market, one showing the AS/AD model) a. The economy experiences a recession and the Fed buys bonds in open market operations. b. The economy experiences an expansion and the Fed sells bonds in open market operations.

Reference no: EM13981963

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