8. If the central bank carries out an open market operation and buys government securities, the federal funds rate drops and the quantity of money increases. TRUE OR FALSE Answer: Reason:

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
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Chapter21: The Monetary System
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8. If the central bank carries out an open market operation and buys government
securities, the federal funds rate drops and the quantity of money increases.
TRUE OR FALSE
Answer:
Reason:
Transcribed Image Text:8. If the central bank carries out an open market operation and buys government securities, the federal funds rate drops and the quantity of money increases. TRUE OR FALSE Answer: Reason:
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