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Reach equilibrium in the money market as institutions

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Reference no: EM132047753

Can you provide a graph along with tell me if the questions are true or false

  1. If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.
  2. The federal government's control of the money supply, which influences interest rates, is the primary tool that policy makers use to impact the macro economy.

Reference no: EM132047753

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