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Title: Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open ... Post by: imomo on Dec 27, 2022 Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open market and the value of borrowed reserves is zero?
▸ It will cause both the equilibrium federal funds rate and the equilibrium quantity of reserves to fall. ▸ It will cause the equilibrium federal funds rate to rise and the equilibrium quantity of reserves to fall. ▸ It will cause the equilibrium federal funds rate to fall, but there will be no change in the equilibrium quantity of reserves. ▸ It will cause the equilibrium federal funds rate to rise, but there will be no change in the equilibrium quantity of reserves. Title: Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open ... Post by: LeonKennedyS on Dec 27, 2022 Content hidden
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