Explain the effect of an open market purchase on interest, Ask an Expert

Economics

Applying the liqudity preference model describe the following impact on interest rates must describe:

a) An open market sale by the Fed Reserve

b) describe the effect of an open market purchase on interest rates. Make sure you discuss the liquidity effect, real income effect, price leel effect, and inflationary expectations effect.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M968100

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