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Answer: A
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If the Federal Reserve wants to lower the inflation rate, it will ____ the federal funds rate by undertaking open market ____ of government securities.
A. lower; sales
B. raise; purchases
C. raise; sales
Answer: C
Explanation:
When the Fed sells securities in the open market, it reduces bank reserves. The reduced money supply will increase the interest rate.
NEW QUESTION: 3
Answer:
Explanation:
Explanation
Catch the most specific exception first.
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