Fed primary goal is to cure inflation

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Assume that the Fed's primary goal is to cure inflation. How can it use open market operations to achieve its goal? What is a possible adverse effect of this action by the Fed (even if it achieves its goal)? Show your work by using IS-LM framework. Discuss in details the repercussion of this on the different economic variables such as GDP, Price level, consumption, investment etc.

Reference no: EM133311646

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