Which of the following actions would the Fed undertake if it wants to follow a more restrictive monetary policy?
A)sell some of its holdings of government bonds
B)decrease government expenditures
C)urge the Treasury to sell more U.S.securities
D)reduce the reserve requirements

Question

Quizplus · Accepted Answer

Selling government bonds is a tool used by the Fed to decrease the money supply, which is a characteristic of a restrictive monetary policy.

Which of the Following Actions Would the Fed Undertake If