In 2012 the Fed announced it would purchase $40 billion of mortgage securities per month.These purchases shifted the ________ reserves curve ________.

Name: In 2012 the Fed announced it would purchase $40 billion of mortgage securities per month.These purchases shifted the ________ reserves curve ________.
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Question

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The Fed's purchase of mortgage securities increases the money supply, which shifts the supply of reserves curve to the right.

In 2012 the Fed Announced It Would Purchase $40 Billion