An increase in the targeted federal funds rate implies that the Fed is buying securities.

Name: An increase in the targeted federal funds rate implies that the Fed is buying securities.
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Question

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An increase in the targeted federal funds rate implies that the Fed is likely selling securities to tighten monetary policy, not buying them. Buying securities would typically be associated with lowering the federal funds rate to inject liquidity into the banking system.

An Increase in the Targeted Federal Funds Rate Implies That