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Effect expansionary monetary policy

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Reference no: EM133064196

a) Draw a supply and demand curve for US government bonds.

b) Show and explain what the effect expansionary monetary policy, using open market operations, will have on equilibrium.

c) Show and explain what the effect of contractionary monetary policy, using open market operations, will have on equilibrium.

d) Explain what the Fed should do if the interest rate is below its target rate? Or above?

Reference no: EM133064196

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