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What Happens When the Fed Aims to Change Interest Rates

Question 107

Multiple Choice

What happens when the Fed aims to change interest rates?


A) It asks Congress to legislate new interest rates.
B) It buys or sells government bonds on the open market to achieve the desired rate.
C) It buys or sells dollars on the foreign exchange market to achieve the desired rate.
D) It announces a new discount interest rate.

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