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Assume that the following conditions​ exist: a. All banks are fully loaned​ up- there are no...

Assume that the following conditions​ exist: a. All banks are fully loaned​ up- there are no excess​ reserves, and desired excess reserves are always zero. b. The money multiplier is 77.     c. The planned investment schedule is such that at a 4 percent rate of​ interest, Investment ​=$1380 billion. At 5​ percent, investment is ​$1350 billion. d. The investment multiplier is 33. e.. The initial equilibrium level of real GDP is ​$1212 trillion. f. The equilibrium rate of interest is 4 percent Now the Fed engages in contractionary monetary policy. It sells ​$22 billion worth of​ bonds, which reduces the money​ supply, which in turn raises the market rate of interest by 1 percentage point. Calculate the decrease in money supply after​ FED's sale of​ bonds:

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