When the Fed bonds, it takes money out of the economy and reduces reserves which contracts the money supply, causing interest rates to
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Increase. When the Federal Reserve (Fed) sells bonds, it effectively takes money out of the economy. This reduces the amount of money banks have on hand, or their reserves. With less money to lend, the money supply contracts. As a result, the cost of borrowing money (interest rates) tends to increas Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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