The federal reserve wants to change the nominal interest rate from 4% to 6%. what action must the federal reserve take?

The Fed needs to decrease the quantity of money by $0.4 trillion.

Explanation:

The Fed needs to decrease the quantity of money by $0.4 trillion. By decreasing the quantity of money, the loss of money supplied will cause the interest rate to rise because the money supply curve will shift to the left, raising the nominal interest rate.

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