The FOMC decreases its target federal funds rate

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Reference no: EM131161151

If at its next policy meeting the FOMC decreases its target federal funds rate,

Describe the open market operations the Fed would enact to achieve a lower federal funds rate.

Explain briefly, and show graphically the effects of these open market operations on the federal funds rate. Briefly explain what the Fed would be trying to achieve with a lower target rate and how the actions that bring about the lower federal funds rate will help to achieve this objective.

Explain the effect this policy action is likely to have on the exchange rate of the U.S. Dollar.

Reference no: EM131161151

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