Based on standard monetary theory if the fed purchases, Business Economics

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Based on standard monetary theory if the fed purchases

Based on standard monetary theory, if the Fed purchases Treasury Bills from banks:

A. The federal funds interest rate will decrease.

B. Only long term interest rates will decrease.

C. The federal funds interest rate will increase.

D. The federal funds interest rate will decrease and long term interest rates will increase.

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Business Economics: Based on standard monetary theory if the fed purchases

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Business Economics: Based on standard monetary theory if the fed purchases

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