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If the Fed is targeting interest rates (hoping to keep them steady) and the demand for money increases, an appropriate policy response would be to
If the Fed is targeting interest rates (hoping to keep them steady) and the demand for money increases, an appropriate policy response would be to increase the money supply. This could be done by the Fed
A. | increasing reserve requirements. | |
B. | increasing the discount rate. | |
C. | buying U.S. Treasury securities from government bond dealers. | |
D. | selling U.S. Treasury securities to the public. | |
E. | None of the above. |
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