Suppose on any given day the prevailing equilibrium federal funds rate is below the Federal Reserve's federal funds target rate. If the Federal Reserve wishes for the federal funds rate to be at their target level,then the appropriate action for the Federal Reserve to take is a ________ open market ________,everything else held constant.
A) defensive;sale
B) defensive;purchase
C) dynamic;sale
D) dynamic;purchase
Correct Answer:
Verified
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Q96: The Fed is considering eliminating
A)primary credit lending.
B)secondary
Q98: The interest rate on secondary credit is
Q99: Discount policy affects the money supply by
Q100: The most common type of discount lending
Q101: Which of the following statements is an
Q102: Explain dynamic and defensive open market operations.
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