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In Order to Lower the Federal Funds Rate, the Fed

Question 118

Multiple Choice

In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________.


A) buys; decrease; increases
B) sells; decrease; decreases
C) sells; increase; decreases
D) buys; increase; increases
E) buys; decrease; decreases

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