2. use the quantity theory of money to explain, Macroeconomics

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2. use the quantity theory of money to explain

2. Use the Quantity Theory of Money to explain inflation (a increase in the overall level
of prices). (4 points) If you were a member of the Federal Reserve Board of the
Governors, what open market operation would you recommend to combat inflation?
Using diagrams of the money and bond markets, show the effects of your suggested
policy.

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