If the Fed Wants to Shift Toward a More Expansionary

Multiple Choice

If the Fed wants to shift toward a more expansionary policy, it often announces that it is going to change the federal funds interest rate. The Fed controls the federal funds interest rate

A) by imposing legal restrictions that prohibit exchanges at interest rates other than the ones designated by the Fed.
B) by having the U.S. Treasury fix this interest rate
C) through its policy of open market operations.
D) by altering the size of the federal budget deficit or surplus.