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Suppose next year that the Federal Reserve wishes to raise the target on the Federal Funds rate to 3/4 percent. To hit the target, the
Suppose next year that the Federal Reserve wishes to raise the target on the Federal Funds rate to 3/4 percent. To hit the target, the Federal Reserve will conduct which of the following actions? Choose one.
Open market purchase of securities | ||
Decrease the interest on excess reserves (IOER) | ||
Increase the interest on excess reserves (IOER) | ||
Open market sales of securities |
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