The Fed engages in open market operations and sells government securities. The result is
A. a lower federal funds rate.
B. a higher federal funds rate.
C. an unchanged federal funds rate because other interest rates did not change.
D. More information is needed to determine what happens to the federal funds rate.
Answer:B
The Fed engages in open market operations and sells government securities. The result is
A. a lower federal funds rate. B. a higher federal funds rate. C. an unchanged federal funds rate because other interest rates did not change. D. More information is needed to determine what happens to the federal funds rate.