The Federal Reserve can purchase _____ to fund fiscal policy, resulting in _____.

Name: The Federal Reserve can purchase _____ to fund fiscal policy, resulting in _____.
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Question

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The Federal Reserve can purchase bonds to fund fiscal policy, which results in an increase in the money supply. When the Federal Reserve buys bonds, it injects money into the economy, increasing the supply of money. This increase in the money supply can stimulate economic growth and is often used as a tool to combat recession.

The Federal Reserve Can Purchase _____ to Fund Fiscal Policy