brandoncarter2002
brandoncarter2002
13.07.2021 • 
Business

Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to decrease aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 5%, then the Federal Reserve should bonds on the open market equal to . a. buy, $4 billion
b. sell, $4 billion
c. buy, $2 billion
d. sell, $2 billion

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