If the Fed buys U.S. government securities from banks, the federal funds rate --------------------and banks' reserves --------------------.
A) rises; increase
B) falls; decrease
C) rises; decrease
D) falls; increase
E) does not change; increases
Correct Answer:
Verified
Q20: The Fed decreases the quantity of money
Q21: The federal funds rate is
A)also known as
Q22: If the Fed's policies aim to increase
Q23: Discretionary monetary policy is monetary policy that
Q24: When the Federal Reserve increases the federal
Q26: If the Fed raises the federal funds
Q27: As the Fed lowers the federal funds
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