When the Fed sells government bonds, the nation's money supply decreases. Explain how this works. To illustrate, you can construct your own bank transactions and changes in the assets and liabilities of the Fed and of banks.
When the Fed sells government bonds, the nation's money supply decreases. Explain how this works. To illustrate, you can construct your own bank transactions and changes in the assets and liabilities of the Fed and of banks.
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When the Fed sells bonds from its portfolio, the individual buyer pays by …View the full answer
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