Economic

Federal Reserve & Open Market Operations

If the Fed shifts to a more restrictive monetary policy, and it utilizes the open market operations tool, describe what will happen to each of the following:

1.  the reserves available to banks

2.  real interest rates

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3.  household spending on consumer durables

4.  the exchange rate value of the dollar

5.  net exports

6.  the prices of stocks

7.  real GDPderal Reserve & Open Market Operations

 
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