(Figure: Monetary Policy and the AD-SRAS Model) Refer to the lniauuI result of:
ID: 1102749 • Letter: #
Question
(Figure: Monetary Policy and the AD-SRAS Model) Refer to the lniauuI result of: O buying govenment securities in the open market. a decrease in the money supply. O lowering the discount rate. O an increase in the money supply. 6. Which is a tool used by the Federal Reserve in the conduct of monetary policy? O issuing new government bonds and retiring old ones O buying and selling corporate bonds O changes in the prime rate 0 buying and selling federal government bonds 7. The short-run effect of a decrease in the money supply is that the aggregate increases, and real output also increases. tart: 8:29 PMExplanation / Answer
Answer 6:
Option D. By buying and selling federal government bonds in the open market.
Answer 7
Decrease in money supply leads to decrease in aggregate demand and decrease in real output of the economy.
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