Federal reserve selling bonds

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Reference no: EM1372077

Suppose if the Federal Reserve were to sell bonds, what would likely happen to money supply and interest rates? Carefully Explain (the money market graph would help). Using the AS/AD model what do you predict will happen to the level of Real GDP and the Price level in the U.S. in the Short-Run and Long-Run? Carefully Explain (a graph would help).

Reference no: EM1372077

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