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 longterm securities such as year Treasury notes.
D a financial transaction in which the Fed borrows funds overnight from a financial firm.
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