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Business, 08.04.2021 18:10 ddarby

Consider an expansionary open market operation. Suppose the Federal Reserve buys government securities from the nonbank public. Suppose that the sellers of government securities deposit the checks drawn on the New York Fed into their bank account. Then, ceteris paribus, bank reserves , currency in circulation , and thus the monetary base will .

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Consider an expansionary open market operation. Suppose the Federal Reserve buys government securiti...

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