Multiple Choice
The Fed engages in open market operations and sells government securities. As long as the federal funds rate stays in the corridor, the result is
A) a lower federal funds rate.
B) a higher federal funds rate.
C) an unchanged federal funds rate because other interest rates did not change.
D) More information is needed to determine what happens to the federal funds rate.
Correct Answer:
Verified
Correct Answer:
Verified
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