If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate falls and the quantity of money increases.

Name: If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate falls and the quantity of money increases.
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Question

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When the Fed sells U.S. government securities, it decreases the banks' reserves, leading to a decrease in the quantity of money and typically an increase in the federal funds rate.

If the Fed Carries Out an Open Market Operation and Sells