Multiple Choice
The Fed can reduce the federal funds rate by
A) decreasing the money supply. To decrease the money supply it could sell bonds.
B) decreasing the money supply. To decrease the money supply it could buy bonds.
C) increasing the money supply. To increase the money supply it could sell bonds.
D) increasing the money supply. To increase the money supply it could buy bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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