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What two monetary policy tools does the Fed now rely on in changing its target for the federal funds rate? Briefly describe how the Fed
What two monetary policy tools does the Fed now rely on in changing its target for the federal funds rate? Briefly describe how the Fed cari use these looks to lower its target for the federal funds rate. (Choose two from the list below.) If the Fed uses these two new policy tools to manage the federal funds rate, it can lower its target rate by A. decreasing the interest rate it pays on banks' excess reserves B. using a policy of quantitative easing to buy long-term securities C. Increasing the Interest rate it pays on banks excess reserves D. raising the interest rate it pays on overnight reverse repurchase facilities CE. lowering the interest rate it pays on overnight reverse repurchase facilties
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