If the federal funds rate stays in the corridor and the Fed wants to raise the federal funds rate, it needs to
A) buy government securities in order to increase the quantity of reserves.
B) sell government securities in order to decrease the quantity of reserves.
C) buy government securities in order to decrease the quantity of reserves.
D) sell government securities in order to increase the quantity of reserves.
Correct Answer:
Verified
Q55: To lower the federal funds rate, the
Q56: Q57: The Fed buys U.S. government securities from Q58: If the Fed buys U.S. government securities Q59: If the Fed wants to lower the Q61: If the Fed wants to decrease the Q62: At the end of 2013, the Fed Q63: Open market purchases by the Fed Q64: If the interest rate on Treasury bills Q65: When the Fed raises the federal funds
A) raise
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