An open market sale of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and an increase in the federal funds rate
B) an excess quantity of reserves supplied and a reduction in the federal funds rate
C) an excess quantity of reserves demanded and an increase in the federal funds rate
D) an excess quantity of reserves demanded and a reduction in the federal funds rate
Correct Answer:
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A) the interest
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Q316: A open market purchase of government securities
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Q318: An open market sale of government securities
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