Multiple Choice
Before the financial crisis of 2008, when the Federal Reserve Banks decided to buy government bonds from commercial banks and the general public, the supply of reserves in the federal funds market
A) increased and the Federal funds rate decreased.
B) increased and the Federal funds rate increased.
C) decreased and the Federal funds rate decreased.
D) decreased and the Federal funds rate increased.
Correct Answer:
Verified
Correct Answer:
Verified
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