Multiple Choice
If the federal funds rate were below the level the Federal Reserve had targeted,the Fed could move the rate back towards its target by
A) buying bonds.This buying would increase the money supply.
B) buying bonds.This buying would reduce the money supply.
C) selling bonds.This selling would increase the money supply.
D) selling bonds.This selling would reduce the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
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