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The federal funds rate is a. the rate the Fed charges member banks to borrow money. b. set directly by the Fed through monetary policy.

The federal funds rate is

a. the rate the Fed charges member banks to borrow money.

b. set directly by the Fed through monetary policy.

c. the rate banks charge each other to borrow money.

d. set directly by the Fed through fiscal policy.

e. the rate banks charge their best customers to borrow money.

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