Rate of growth of the money supply

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Reference no: EM133251940

1. The U.S. Federal Reserve is fighting inflation by trying to reduce the rate of growth of the money supply.

2. Suppose it buys/sells $75 billion in U.S. Treasury bills from/to U.S. residents. Show with T-accounts the effect these transactions will have on the Fed's balance sheet, U.S. residents' balance sheets, and U.S. banks' balance sheets.

Reference no: EM133251940

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