The Fed uses the federal funds rate as the short-term monetary policy instrument to achieve  the goals of price stability and full-employment output. And the Fed raises or cuts the federal  funds rate (equivalently saying, decreases or increases money supply, respectively) through  the Open Market Operation. In order to lower the interest rate, the Fed would need to  __________ Treasury bonds through the Open Market Operation. a. sell b. buy

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Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
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 The Fed uses the federal funds rate as the short-term monetary policy instrument to achieve 
the goals of price stability and full-employment output. And the Fed raises or cuts the federal 
funds rate (equivalently saying, decreases or increases money supply, respectively) through 
the Open Market Operation. In order to lower the interest rate, the Fed would need to 
__________ Treasury bonds through the Open Market Operation.
a. sell b. buy

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