Question: Forward guidance is A . the current system under which the Fed uses the interest rate on banks' reserve balances and the interest rate on

Forward guidance is
A. the current system under which the Fed uses the interest rate on banks' reserve balances and the interest rate on overnight loans with financial firms to establish a floor under the federal funds rate.
B. the statements by the Federal Open Market Committee about how it will conduct monetary policy in the future
C. the Fed policy that attempts to increase aggregate demand by buying long-term securities, such as 10-year Treasury notes.
D. a financial transaction in which the Fed borrows funds overnight from a financial firm.
Forward guidance is A . the current system under

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