To achieve its target when the federal funds rate is below the target range, the Fed could:
A) buy bonds.
B) reduce the reserve requirement.
C) increase the reserve requirement.
D) cut the discount rate.
Correct Answer:
Verified
Q118: Who buys and sells in the Fed
Q119: When the Fed lowered the discount rate
Q120: When the Fed reduces the discount rate,
Q121: In 2008, the Fed followed an expansionary
Q122: The Fed generally announces what it is
Q124: If the federal funds rate falls below
Q125: When the Fed raised interest rates between
Q126: If banks are short of reserves, the
Q127: To target a rate that is higher
Q128: A reduction in the federal funds rate
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