Suppose,at a Given Federal Funds Rate,there Is an Excess Demand

question 74

Multiple Choice

Suppose,at a given federal funds rate,there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level,then it should undertake an open market ________ of bonds,everything else held constant. If the Fed does nothing,however,the federal funds rate will ________.

• A)sale;increase
• B)purchase;increase
• C)sale;decrease
• D)purchase;decrease

---

Definitions:

Segmentation Strategy

Segmentation Strategy involves dividing a broad market into distinct subgroups of consumers with common needs or characteristics, to target them more effectively.

Butterball Turkeys

A brand known for its turkey products, including whole turkeys and turkey meats, popular in the United States especially during festive seasons.

Swift Meat Company

A historic American corporation involved in the meat packing industry, now part of JBS S.A.

Market Segment

A subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product or service needs.