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If the Fed Is Targeting Interest Rates, During an Economic

Question 43

Multiple Choice

If the Fed is targeting interest rates, during an economic downturn it will


A) use open market purchases to lower interest rates.
B) use open market sales to raise interest rates.
C) avoid open market operations so as not to interfere with the adjustment of interest rates.
D) impose limitations on the interest rates that banks may charge on credit cards.

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