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Refer to the Given Figure Where the Nominal Interest Rate

Question 38

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Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. If the Federal Reserve wants to set the nominal interest rate at 10 percent, it must conduct open market ________ to set the money supply at ________. A) purchases; 200 B) sales; 200 C) purchases; 800 D) sales; 800 If the Federal Reserve wants to set the nominal interest rate at 10 percent, it must conduct open market ________ to set the money supply at ________.


A) purchases; 200
B) sales; 200
C) purchases; 800
D) sales; 800

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