The Fed can increase the federal funds rate by
A) Selling government bonds,which causes market interest rates to rise.
B) Buying government bonds.
C) Simply announcing a higher rate because the Fed has direct control of this interest rate.
D) Changing the money multiplier.
Correct Answer:
Verified
Q78: Which of the following equals the current
Q79: When the Fed wishes to increase the
Q80: Through open market operations,the Fed is able
Q81: Suppose the Federal Reserve System has a
Q82: Suppose the Federal Reserve System has a
Q84: The Fed can decrease the federal funds
Q85: If the Federal Reserve buys government bonds
Q86: If the Fed wishes to reduce the
Q87: If the Fed buys $32 billion of
Q88: A growing economy needs a
A)Steadily increasing supply
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents