The Fed's efforts to stimulate and make the economy grow require that the Fed:

Question

Quizplus · Accepted Answer

The Fed's efforts to stimulate and make the economy grow require that the Fed buys bonds to lower interest rates. This is because when the Fed buys bonds, it increases the demand for bonds, which causes bond prices to rise and yields (i.e. interest rates) to fall. Lower interest rates encourage borrowing and spending, which can stimulate economic growth.

The Fed's Efforts to Stimulate and Make the Economy Grow