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Suppose the fed announces that it is raising its target interest rate by 25 basis points, or 0.25 percentage point. to do this, the fed will use open-market operations to the mo…

Suppose the fed announces that it is raising its target interest rate by 25 basis points, or 0.25 percentage point. to do this, the fed will use open-market operations to the mo…
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2 votes
Suppose the fed announces that it is raising its target interest rate by 25 basis points, or 0.25 percentage point. to do this, the fed will use open-market operations to the money by the public.

asked
User Luke Antins
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8.0k points

2 Answers

3 votes

The will reduce the money supply to the public.

answered
User Mlapaglia
by
8.4k points
5 votes

Answer:

This will cause public supply to shrink.

Step-by-step explanation:

answered
User Phil Blackburn
by
8.6k points
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