If the federal funds rate were below the level the Federal Reserve had targeted, the Fed could move the rate back towards its target by

a. buying bonds. This buying would increase the money supply.
b. buying bonds. This buying would reduce the money supply.
c. selling bonds. This selling would increase the money supply.
d. selling bonds. This selling would reduce the money supply.


d

Economics

You might also like to view...

Provide a justification for favoring in-kind transfer payments over cash transfer payments. Why might the fungibility of money erode the strength of this justification?

What will be an ideal response?

Economics

It usually takes less time to buy a six-pack of 7-Up, a loaf of bread, and a half-gallon of ice cream at a small convenience store (such as a 7-Eleven) than at a large, full-service grocery store. Which of the following persons is most likely to buy these items at a convenience store?

A) a person with a high opportunity cost of time B) a person with a low opportunity cost of time C) a person who is out of work D) a person who works at a full-service grocery store

Economics

If you wanted to compare the quantity of output of a country across time periods, which of the following would you use?

What will be an ideal response?

Economics

Which of the following is a consequence of low income??

What will be an ideal response?

Economics