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Jchanis15 Jchanis15
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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 $500 billion in reserves and a 3 percent federal funds rate.




Refer to the scenario above. If the Fed completes an open market sale of bonds that changes the quantity of reserves by $400 billion, then the federal funds rate will ________.

▸ remain at 3 percent

▸ increase to 5 percent

▸ decrease to 1 percent

▸ more information is needed to determine the new federal funds rate
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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prospectjayprospectjay
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A year ago
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Jchanis15 Author
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A year ago
Thank you, thank you, thank you!
carston
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Yesterday
This helped my grade so much Perfect
Harvinder
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2 hours ago
Good timing, thanks!
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