Suppose the federal open market committee decides to buy 40


Suppose the Federal Open Market Committee decides to buy $40 billion in securities as part of their open market operations. For each of the following, identify whether the component mentioned will increase or decrease. Don't have to explain.

a. Excess Reserves

b. Federal Funds Rate

c. Money Supply

d. Investment

e. Aggregate Demand

f. Price Level

g. Real Output (GDP)

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Business Economics: Suppose the federal open market committee decides to buy 40
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