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real i rate A S B Dm Quantity of Money Looking at this graph of...

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Basic Math

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real i rate A S B Dm Quantity of Money Looking at this graph of the money market how might we move from point A to point B O a The Federal Reserve could hold an open market operation and buy bonds b Congress could use fiscal policy and tighten its spending O c The Federal Reserve could hold an open market operation and sell bonds d Government could lift price controls on agricultural goods

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