Fed shifts to a more expansionary monetary policy

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Reference no: EM131193703

If the Fed shifts to a more expansionary monetary policy, it will generally buy Treasury bonds in the open market. How would this action influence each of the following?

a. The federal funds rate. (The inter-bank interest rate)

b. The reserves available to banks.

c. Household spending on consumer durables.

d. The exchange value of the dollar.

e. U.S exports and imports, and current account balance.

f. The price of stocks and real assets like apartments and office buildings.

g. Real GDP.

Reference no: EM131193703

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