Federal reserve selling bonds

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Suppose if the Federal Reserve were to sell bonds, what would likely happen to money supply and interest rates? Carefully Explain (the money market graph would help). Using the AS/AD model what do you predict will happen to the level of Real GDP and the Price level in the U.S. in the Short-Run and Long-Run? Carefully Explain (a graph would help).

Reference no: EM1372077

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