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Central bank sells treasury bonds

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Reference no: EM132479044

What happens to each market listed below after the central bank sells treasury bonds?

(include a brief explanation as to why each change happens)

(these are in order of occurrence)

i. The interest rate on federal funds

ii. The interest rate on all other loans in the economy (as a result of a.)

iii. Aggregate demand for goods and services (results from b.)

Reference no: EM132479044

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