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) The Fed currently sets both an interest rate and a quantity target for monetary policy
D) If the Fed were to target the quantity of reserves, an increase in reserve demand would raise the federal funds rate
Correct Answer:
Verified
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