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Blittle5 Blittle5
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A year ago
Scenario: The following figure shows the federal funds market. Assume that the market of reserves is in equilibrium at point (R0, i0).




Refer to the scenario above. If the Fed undertakes an open market purchase of bonds, ________.

▸ the reserves supply curve shifts from RS1 to RS0

▸ the reserves supply curve shifts from RS0 to RS2

▸ the reserves supply curve shifts from RS0 to RS1

▸ the reserves supply curve shifts from RS2 to RS1
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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mossaddsmossadds
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A year ago
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