Money supply and interest rates


If the Federal Reserve were to sell bonds, what would likely take place to the money supply and interest rates? Carefully describe the money market graph would help). Using the AS/AD model what do you predict will happen to the level of Real GDP and the Price level in the U.S. in the Short-Run and Long-Run? Carefully Explain (a graph would help).

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Microeconomics: Money supply and interest rates
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