The Fed engages in open market operations and sells government securities. The result is
A) a lower federal funds rate.
B) an unchanged federal funds rate because other interest rates did not change.
C) a higher federal funds rate.
D) More information is needed to determine what happens to the federal funds rate.
Correct Answer:
Verified
Q43: Q44: The Fed buys U.S. government securities from Q45: Monetary policy produces ripple effects, some of Q46: By using open market operations, the Federal Q47: If the Fed increases the quantity of Q49: If the Fed carries out an open Q50: An increase in the quantity of reserves Q51: If the Fed wants to raise the Q52: When the federal funds interest rate is Q53: Long-term interest rates are _ than short-term
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