The Fed can reduce the federal funds rate by
a. decreasing the money supply. To decrease the money supply it could sell bonds.
b. decreasing the money supply. To decrease the money supply it could buy bonds.
c. increasing the money supply. To increase the money supply it could sell bonds.
d. increasing the money supply. To increase the money supply it could buy bonds.
d
You might also like to view...
Major increases in oil prices in the mid-1970s and in the late 1970s created:
A. beneficial aggregate demand shocks. B. adverse aggregate supply shocks. C. an increase in long-run aggregate supply. D. a reduction in the unemployment rate.
Of the arguments for limiting trade, which one is the most appealing to economists?
A. helping an industry that is in trouble B. protecting the profits of companies C. preventing other countries from getting a comparative advantage by their use of environmentally irresponsible actions D. protecting the jobs of citizens