The Feds target for the federal funds rate a. is an extra policy tool for the central

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The Fed’s target for the federal funds rate

a. is an extra policy tool for the central bank in addition to and independent of the money supply.

b. commits the Fed to set a particular money supply so that it hits the announced target.

c. is a goal that is rarely achieved because the Fed can determine only the money supply.

d. matters to banks that borrow and lend federal funds but does not influence aggregate demand.

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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 26, 2024 03:01 AM

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The Feds target for the federal funds rate a. is an extra policy tool for the central

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Essentials Of Economics

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