rayne0530 rayne0530
  • 16-03-2020
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When the Fed sells a bond, it

When the Fed sells a bond it class=

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ShireUS
ShireUS ShireUS
  • 16-03-2020

Answer:

When the Fed sells a bond, it removes money from circulation, equivalent to the value of the bond.

Explanation:

Additionally, if the Fed sells bonds, prices are pushed down and interest rates increase.  

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