The Fed Can Raise the Target for the Federal Funds

question 74

True/False

The Fed can raise the target for the federal funds rate by selling government bonds in the open market.

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Definitions:

Negative Reinforcement

Negative reinforcement is a behavior modification technique that involves the removal of an unpleasant stimulus to encourage a desired behavior.

Contingent Reinforcement

A strategy in behavior management that involves the delivery of rewards or consequences that are dependent on the performance of the targeted behavior.

Desired Behavior

The specific actions or reactions that an individual or organization seeks to encourage or bring about.

Immediate Reinforcement

The delivery of a reward directly after a desired behavior is performed, enhancing its likelihood of recurrence.