In order to raise the federal funds rate, the Fed_{--------------------} government securities in open market operations, so that banks' reserves _{--------------------} and the quantity of money _{--------------------} .

Question

Quizplus · Accepted Answer

When the Fed sells government securities, it decreases the reserves of banks, leading to a decrease in the quantity of money, which helps raise the federal funds rate.

In Order to Raise the Federal Funds Rate, the Fed--------------------

In Order to Raise the Federal Funds Rate, the Fed_{--------------------}