The Fed undertakes dynamic open-market operations
A)when it wants to change monetary policy.
B)because of seasonal effects.
C)when it wants to change fiscal policy.
D)to offset a temporary change in money demand.

Question

Quizplus · Accepted Answer

Dynamic open-market operations are conducted by the Federal Reserve when it wants to change monetary policy, such as adjusting interest rates or influencing the money supply.

The Fed Undertakes Dynamic Open-Market Operations