Yesterday it was reported that the U.S. was clearly experiencing an economic downturn. A strategy the Fed may enact if the nation is facing recession is to buy government securities in open-market operations.

Question

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The Fed commonly relies on open-market operations, which consists of buying and selling U.S. government securities, to increase or decrease the money supply. The Fed buys securities when it wants to stimulate the economy, which loosens the supply of money.

Yesterday It Was Reported That the U