When the economy is weak, the Fed sells government securities on the open market.

Name: When the economy is weak, the Fed sells government securities on the open market.
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When the economy is weak, the Fed actually purchases government securities on the open market in order to increase the money supply and stimulate economic growth. This is a form of expansionary monetary policy. Selling government securities would decrease the money supply and potentially worsen the economic situation.

When the Economy Is Weak, the Fed Sells Government Securities