Question:

Economic-Fed conducts open market question-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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2 ANSWERS


  1. Interest rates.

    buying and selling bonds has nothing to do with aggregate supply


  2. d) a and b   (SRAS and interest rates)

    LRAS will not be affected because money are neutral in the long-run.

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