Under the Fed's current interest-rate-targeting approach to monetary policy, if the demand for federal funds by depository institutions increases today, then, other things being equal

A) the market federal funds rate decreases, and the Fed's Trading Desk responds by selling bonds.
B) the market federal funds rate increases, and the Fed's Trading Desk responds by buying bonds.
C) the market federal funds rate decreases, and the Fed's Trading Desk responds by buying bonds.
D) the market federal funds rate increases, and the Fed's Trading Desk responds by selling bonds.

B

Economics

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Short-run cost relationships for a firm are

A) determined by the law of diminishing marginal product. B) determined by the specific long-run relationships that exist. C) due to the level of wages relative to other input prices. D) due to the normal contractual relations in a market.

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The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products

A) centrally planned economies B) government-run health care C) nationalizing oil companies D) patents and copyrights

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