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When the Federal Reserve seeks to raise the targeted federal funds rate, it _____. Multiple Choice buys government securities to decrease the excess reserves available

When the Federal Reserve seeks to raise the targeted federal funds rate, it _____.

Multiple Choice

  • buys government securities to decrease the excess reserves available for overnight loans

  • buys government securities to increase the excess reserves available for overnight loans

  • sells government securities to decrease the excess reserves available for overnight loans

  • sells government securities to increase the excess reserves available for overnight loans

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