Question: Question 4 ( 2 points ) When the Fed purchases bonds, the Fed: reduces the reserves and the federal funds rate increases increases the reserves

Question 4(2 points)
When the Fed purchases bonds, the Fed:
reduces the reserves and the federal funds rate increases
increases the reserves and the federal funds rate decreases
reduces the reserves and the federal funds rate decreases
increases the reserves and the federal funds rate increases
Question 4 ( 2 points ) When the Fed purchases

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