Multiple Choice
Suppose on any given day the prevailing equilibrium federal funds rate is above the Federal Reserve's federal funds target rate. If the Federal Reserve wishes for the federal funds rate to be at their target level,then the appropriate action for the Federal Reserve to take is a ________ open market ________,everything else held constant.
A) defensive;sale
B) defensive;purchase
C) dynamic;sale
D) dynamic;purchase
Correct Answer:
Verified
Correct Answer:
Verified
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