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

Name: In 2012 the Fed announced hat 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 supply of reserves in the banking system, which shifts the reserves curve rightward.

In 2012 the Fed Announced Hat It Would Purchase $40