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Suppose the fed announces that it is raising its target interest rate by 25 basis points, or 0.25 percentage point. to do this, the fed will use open-market operations to the money by the public.

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3 votes

The will reduce the money supply to the public.

User Mlapaglia
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5 votes

Answer:

This will cause public supply to shrink.

Step-by-step explanation:

User Phil Blackburn
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