If the Fed wants to lower the federal funds rate, it should:

Home Work Help
1

  1. If the Fed wants to lower the federal funds rate, it should
    a. sell government securities in the open market
    b. increase the reserve ratio
    c. increase the discount rate
    d. buy government securities in the open market

  2. If the amount of money demanded exceeds the amount supplied, the
    a. interest rate will fall
    b. money-supply curve will shift to the right
    c. interest rate will rise
    d. demand-for-money curve will shift to the left

  3. The purpose of an expansionary monetary policy is to shift the:
    a. aggregate demand curve leftward
    b. aggregate supply curve leftward
    c. aggregate demand curve rightward
    d. investment demand curve leftward