To decrease the money supply,the Federal Reserve could

Question

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To decrease the money supply, the Federal Reserve can conduct an open market sale of Treasury securities. This involves selling government bonds to banks and other financial institutions, which in turn reduces the amount of money that is available in the economy. When the supply of money decreases, interest rates typically rise, which can help to curb inflationary pressures. This is a commonly used tool by the Federal Reserve to manage the money supply.

To Decrease the Money Supply,the Federal Reserve Could