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When resources are scarce, the Fed can decrease the federal funds rate by modest ___________ of treasury securities in the open market. When reserves are

When resources are scarce, the Fed can decrease the federal funds rate by modest ___________ of treasury securities in the open market. When reserves are superabundant, the Fed can decrease the federal funds rate by ___________ the interest rate on excess reserves.

a) purchases; increasing

b) sales; decreasing

c) purchases; decreasing

d) sales; increasing

Choose a, b, c, or d

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