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Economic-Bonds-thank you?

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When the Fed conducts open market operations, the impact of the buying or selling of bonds will include changes in

SRAS.

interest rates.

LRAS.

a and b

a, b and c

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  1. a and b

    "a" because in short-run monetary policy affects investments thus SRAS (mostly equipment and current assets).

    "b" because of increased money supply on monetary markets.

    "c" LRAS is false because money are neutral in long-run.

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