Question

When the Federal Reserve seeks to contract the money supply, it may Group of answer choices sell securities and raise the targeted federal funds rate sell securities and lower the targeted federal funds rate buy securities and raise the targeted federal funds rate buy securities and lower the targeted federal funds rate

Answer 1

Answer:

Option "Sell securities but instead start raising the federal objective  Rate of funds" is the right response.

Explanation:

• Across the whole of collective memory, the free-market community had already progressed thru all the boom-and-bust phases.
• The Federal Reserve must have been designed to assist start reducing this year's injuries caused mostly during depressions but instead provided several other effective features to impact the money supply. Continue reading to learn how well the Fed is managing this same money supply.

Some other decisions are not comparable to the type of situation in question. So that is the correct choice.