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By using open market operations, the Federal Reserve

vellojo

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By using open market operations, the Federal Reserve

By using open market operations, the Federal Reserve
A) controls banks' demand for reserves, thereby keeping the Federal funds rate equal to its target.
B) adjusts the supply and demand of reserves to keep the Federal funds interest rate equal to its target.
C) adjusts the demand of reserves to keep bank rates in line with the Federal funds rate target.
D) adjusts the supply of reserves to keep the Federal funds interest rate equal to its target.

Textbook

Foundations of Macroeconomics

Edition: 8^th

Authors: Bade, Parkin

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Studying economics @ Edinburgh U

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amish

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vellojo Author

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