If the Fed buys U.S. government securities,
A. the federal funds rate will fall.
B. the federal funds rate will rise.
C. bank reserves will decrease.
D. the discount rate will rise.
Answer:A
If the Fed buys U.S. government securities,
A. the federal funds rate will fall. B. the federal funds rate will rise. C. bank reserves will decrease. D. the discount rate will rise.