If the Fed wants to raise the federal funds rate it will
A. buy government securities in order to increase the quantity of reserves.
B. sell government securities in order to decrease the quantity of reserves.
C. buy government securities in order to decrease the quantity of reserves.
D. sell government securities in order to increase the quantity of reserves.
Answer:B
If the Fed wants to raise the federal funds rate it will
A. buy government securities in order to increase the quantity of reserves. B. sell government securities in order to decrease the quantity of reserves. C. buy government securities in order to decrease the quantity of reserves. D. sell government securities in order to increase the quantity of reserves.