If the Fed wants to sell more government bonds than people are willing to buy,then the Fed should

Question

Quizplus · Accepted Answer

If the Fed wants to sell more government bonds than people are willing to buy, then it needs to decrease the price it asks for the bonds. This will make the bonds more attractive to buyers and increase demand for them. Switching to another type of monetary policy lever or to fiscal policy may not be necessary or effective in this situation.

If the Fed Wants to Sell More Government Bonds Than