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Basic Question 1 of 15
If the Fed wants to fight recession, it should ______
II. raise the federal funds rate target.
III. increase the supply of money.
IV. decrease the supply of money.
I. lower the federal funds rate target.
II. raise the federal funds rate target.
III. increase the supply of money.
IV. decrease the supply of money.
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Learning Outcome Statements
describe qualities of effective central banks; contrast their use of inflation, interest rate, and exchange rate targeting in expansionary or contractionary monetary policy; and describe the limitations of monetary policy
CFA® 2025 Level I Curriculum, Volume 1, Module 4.