When the Fed fears inflation, the Fed ________ government securities, so that the federal funds rate ________ and the quantity of money ________
A) buys; rises; decreases
B) sells; falls; increases
C) buys; falls; increases
D) sells; falls; decreases
E) sells; rises; decreases
E
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What will be an ideal response?
Which of the following actions would the Fed undertake if it wants to follow a more restrictive monetary policy?
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a. True b. False Indicate whether the statement is true or false
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Indicate whether the statement is true or false