Suppose again that discount brokers make bonds more liquid. What should the central bank do if it

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Suppose again that discount brokers make bonds more liquid. What should the central bank do if it doesn’t want the interest rate to change? Explain your answer.

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:40 AM

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Suppose again that discount brokers make bonds more liquid. What should the central bank do if it

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In order to prevent the drop in the nominal interest rate the central bank should decrease t...View the full answer

Money Banking and Financial Markets

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