Author Question: If the Federal Reserve uses open market operations to offset a recession, the Fed ________ ... (Read 57 times)

WhattoUnderstand · **on:** Jun 29, 2018

If the Federal Reserve uses open market operations to offset a recession, the Fed ________ government securities in order to ________ the federal funds rate.

A) buys; not change
B) sells; raise
C) sells; lower
D) buys; lower
E) buys; raise

Question 2

Incentives work by changing the trade-offs faced by individuals.

Indicate whether the statement is true or false