Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will securities on the open market which will the supply of reserves in the market for reserves, pushing the rate closer to the target rate. Question 5 options:

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01-01-2021
Business

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Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will securities on the open market which will the supply of reserves in the market for reserves, pushing the rate closer to the target rate. Question 5 options:

Sagot :

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Lanuel Lanuel · Answer 1 · 2021-01-06T01:08:08-05:00

Lanuel Lanuel

06-01-2021

Answer:

purchase; increase.

Explanation:

Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will purchase securities on the open market which will increase the supply of reserves in the market for reserves, pushing the rate closer to the target rate.

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