If the Fed shifts to more restrictive monetary policy, it typically sells bonds. How will this action influence the following? a. the reserves available rates b.real interest rates c. Household spending on consumer durables d. the exchange rate value of the dollar e. net exports f. the price of stocks & real assets ( like apartments or office buildings) g. real GDP

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 7CQ
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If the Fed shifts to more restrictive monetary policy, it typically sells bonds. How will this action influence the following?

a. the reserves available rates b.real interest rates c. Household spending on consumer durables d. the exchange rate value of the dollar e. net exports f. the price of stocks & real assets ( like apartments or office buildings) g. real GDP

 

 

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