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Calculating the lower interest rates

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Suppose that the economy is in a recession. Under these circumstances, the Fed will want to lower interest rates, so as to stimulate the economy. The Fed's main tool to accomplish this is through open-market operations. What does the Fed do when it engages in open-market operations? What specific actions would the Fed take to lower interest rates? How would these actions accomplish the goal?

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Reference no: EM131040047

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