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Federal reserve open market operations

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Reference no: EM131480036

Using the Federal Reserve's open market operations tool, show the effect of expansionary monetary policy on GDP, employment and inflation. To illustrate your answer, use the three graphs shown in class (M supply/M demand, investment demand, and AS/AD).

For both questions, make sure you explain carefully what is happening on the graphs. I need to know you understand what you are doing both graphically and in words.

Reference no: EM131480036

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