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charle [14.2K]
3 years ago
7

Suppose on any given day there is an excess supply of reserves in the federal funds market. If the Federal Reserve wishes to kee

p the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.
Business
1 answer:
Dennis_Churaev [7]3 years ago
4 0

Answer:

... then the appropriate action for the Federal Reserve to take is a <u>DEFENSIVE</u>  open market <u>SALE</u>, everything else held constant.

Explanation:

Defensive open market operations are carried out to temporarily offset fluctuation in the market of securities (either too much or too little demand, or supply).

A defensive pen market sale will lower the supply of reserves without having to change the current interest rates. If it doesn't do anything, the interest rates will probably decrease.

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8 0
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4 0
4 years ago
Oni makes apple pies for the local bakery. when toni works with an assistant, she produces 60% more apple pies and works 20% few
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8 0
3 years ago
The typical presidential appointee spends about __________ on the job before leaving for other employment. six months one year t
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3 0
4 years ago
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False is correct answer.

Because the federal funds rate target is not the most frequently used their monetary policy tool.

Hope it helped you.

-Charlie
5 0
4 years ago
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