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QUESTION 28 3 points Save Answer Fill in the blanks below. Possible options are given in...

QUESTION 28 3 points Save Answer Fill in the blanks below. Possible options are given in the parentheses after each blank. No

QUESTION 28 3 points Save Answer Fill in the blanks below. Possible options are given in the parentheses after each blank. Note that in order to get credits for this question, all your answers must be correct. There is no partial credit (so as to discourage you from simply guessing the answers). Please consider drawing all the relevant curves on a piece of paper to help you visualize the changes. Suppose all relevant markets are in equilibrium. Now, the Fed decides to decrease the money supply by (buying, selling) bonds. This action shifts the demand curve in the bond market to the (left, right). At the same time, the money supply curve shifts to the (left, right). As a result, bond prices (increase, decrease), the interest rate (increases, decreases). In addition, investment and net exports both (increase, decrease), causing real GDP to (increase, decrease).
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The Fed decides to decrease the money supply by selling bonds. This action shifts the demand curve in the bond market to the

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