if the fed wants to lower the federal funds rate it should

#IF THE FED WANTS TO LOWER THE FEDERAL FUNDS RATE IT SHOULD FULL#

Most at risk are 100 Treasury funds, which can’t shift. Treasury securities would be most at risk in a debt ceiling crisis. Which of the following actions by the Fed would cause the money supply to increase? A. Money market funds whose portfolios are entirely made up of U.S. raise interest rates and restrict the availability of bank credit. The purpose of a restrictive monetary policy is to: A. If interest rates in the market were lower than the deposit rate paid by the Reserve Bank, banks would choose to hold more ES balances. If the Fed wants to lower the FFR, it purchases securities. lowers both the interest rate and aggregate demand. The federal funds rate is the interest rate that banks charge each other for overnight loans.

lowers the interest rate and increases aggregate demand. increases both the interest rate and aggregate demand. increases the interest rate and decreases aggregate demand. D sell government securities, raise reserve requirements, lower the discount rate, and increase the interest - paid on reserves held at the Fed banks. Csell government securities, lower reserve requirements, lower the discount rate, and increase the interest paid on reserves held at the Fed banks. B buy government securities, raise reserve requirements, raise the discount rate, and reduce the amount of interest paid on reserves held at the Fed banks. If the Federal Reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to: A sell government securities, raise reserve requirements, raise the discount rate, and increase the interest paid on reserves held at the Fed banks. A tax increase and an increase in the interest rate. A reduction in government expenditures and a decline in the money supply. A tax reduction and an increase in the money supply. A tax increase and an increase in the money supply. Assuming government wishes to either increase or decrease the level of aggregate demand, which of the following pairs are not consistent policy measures? A. D An increase in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP. C An increase in the money supply will raise the interest rate, decrease investment spending and decrease aggregate demand and GDP.

#IF THE FED WANTS TO LOWER THE FEDERAL FUNDS RATE IT SHOULD FULL#

the two objectives of most central banks, to 1) control inflation and 2) maintain full employment. Which of the following best describes the cause-effect chain of an expansionary monetary policy? A A decrease in the money supply will lower the interest rate, increase investment spending and increase aggregate demand and GDP B A decrease in the money supply will raise the interest rate, decrease investment spending and decrease the use of the money supply to influence macroeconomic aggregates, such as output, inflation, and unemployment. sell government securities in the open market. buy government securities in the open market.

As a result, newly issued debt securities offer lower interest rates. If the Fed wants to lower the federal funds rate, it should: A increase the discount rate. Fed rate cuts are designed to lower interest rates throughout the economy and make it cheaper to borrow money.

If the fed wants to lower the federal funds rate it should