Refer to the Figure Below Where the Nominal Interest Rate

question 95

Multiple Choice

Refer to the figure below where the nominal interest rate equals 6% and the money supply equals 600. If the Federal Reserve wants to set the nominal interest rate at 4%, 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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