(Answered)-The Fed can reduce the federal funds rate by A. decreasing the - (2025 Updated Original AI-Free Solution

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Academic Level: Undergrad. (yrs 3-4)

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Question

The Fed can reduce the federal funds rate by

A. decreasing the money supply. To decrease the money supply it could sell bonds.
B. decreasing the money supply. To decrease the money supply it could buy bonds.
C. increasing the money supply. To increase the money supply it could sell bonds.
D. increasing the money supply. To increase the money supply it could buy bonds.