If the Federal Funds Rate Is Below the Fed Target

question 73

True/False

If the federal funds rate is below the Fed target, the Fed will conduct an open market sale to increase the federal funds rate to the desired level.

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Definitions:

Negative Reinforcement

Negative reinforcement involves the removal of an unpleasant stimulus to increase the likelihood of a particular behavior being repeated.

Removal

The act or process of taking something away or eliminating it.

Behavior

Observable actions of human beings and non-human animals, including their interactions with the environment and other organisms.

Negative Reinforcement

A form of operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.