Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
A) Buy U.S. securities.
B) Force the Treasury to reduce the national debt.
C) Raise the discount rate.
D) Increase the reserve requirements.

Question

Quizplus · Accepted Answer

Buying U.S. securities is a form of open market operations that increases the money supply by injecting new money into the economy. The other options would reduce the money supply, which would not stimulate the economy.

Which of the Following Would Be Most Appropriate If the Federal