Which of the following statements is not correct?
A) The current target of the FOMC is the federal funds rate
B) If the Fed were to target the quantity of reserves, a decrease in reserve demand would result in a lower federal funds rate
C) If the Fed were to target the quantity of reserves, an increase in reserve demand would raise the federal funds rate
D) The Fed can target both the quantity of reserves and the federal funds rate simultaneously
Correct Answer:
Verified
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