Multiple Choice
When the Federal Reserve increases the Federal Funds target rate,it achieves this target by
A) purchasing government bonds.This action will reduce investment and shift aggregate demand to the right.
B) purchasing government bonds.This action will increase investment and shift aggregate demand to the right.
C) selling government bonds.This action will reduce investment and shift aggregate demand to the left.
D) selling government bonds.This action will increase investment and shift aggregate demand to the left.
Correct Answer:
Verified
Correct Answer:
Verified
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