Refer to the Given Figure Where the Nominal Interest Rate

question 77

Multiple Choice

Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. If the Federal Reserve wants to set the nominal interest rate at 4 percent, it must conduct open market ________ to set the money supply at ________.

• A)purchases; 200
• B)sales; 200
• C)purchases; 800
• D)sales; 800

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