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Part $1$

In response to the severity of the financial$$ crisis, the Fed started to rapidly reduce the target range for the federal funds rate in September $2007$ and, from December $2008$ to December$2015,$ held the target range between$0\%$ and$0\mathrm{.}25\%.$

Which of the following statements is$$ true?

Part $2$

A$.$

Since the Fed does not set the federal funds$$ rate, the actual federal funds rate exceeded that target range over most of the$$ seven$-$year

period.

B$.$

Since the Fed does not set the federal funds$$ rate, the actual federal funds rate fell below that target range over most of the$$ seven$-$year

period.

C$.$

The Fed successfully held the actual federal funds rate within that target range over the$$ seven$-$year period by conducting open market operations to increase or decrease bank reserves

quickly.

D$.$

Open market operations conducted by the Fed were not able to increase or decrease bank reserves quickly enough to keep the actual federal funds rate within that target range throughout the entire$$ seven$-$year

period.