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- 2011-7-11
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- 2016-4-19
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An increase (decrease) in the money supply will result in an excess supply of (demand for) money, leaving individuals and firms to buy (sell) securities, driving securities prices up (down ) and decreasing (increasing) interest rates.
But a question about this: how does the Fed induce individuals / firms to buy (or sell) its newly issued securities if the market is already at equilibrium? |
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