An open market sale will A. Increase the bank reserves and money supply, and causes the federal funds rate to tall B. Reduce the bank reserves and money supply, and causes the federat funds rate to raise C. increase the bank reserves and money supply, and causes the fedcral funds rate fo rase D. Reduce the barik reserves and money supply, and causes the federal funds rate to fall QUESTION 17 If the Federal Reserve wants to curb the high infation rate in the econony, it can use policy tools (for example, open market operatons) to change the aterest rates Should the Fed increase or lower the federal fund rate of interest rate in oider to fight inflaton? A increase the Federal Funds Rale to curb inflation 8. Reduce the Federal Funds Rate to cub inflation QUESTION 18 Thus is a follow up question of the peevious question 17 . Agan, lets assume the inflation rate in the economy s hogh and undesirable loday The f ed is amang to curb A Buy E. Sed c. None of the above