Every time the Fed buys or sells on the open market,the __________ changes.
A) budget deficit
B) income tax rate
C) money supply
D) a and b
E) a,b,and c

Question

Quizplus · Accepted Answer

When the Fed buys or sells on the open market, it affects the amount of money in circulation, known as the money supply. This can impact interest rates, inflation, and economic growth. The budget deficit and income tax rate may indirectly impact the economy, but they are not directly affected by open market operations.

Every Time the Fed Buys or Sells on the Open