If the Federal Reserve _____ securities in the open market, the money supply will increase, which leads to _____ in the interest rate.

Name: If the Federal Reserve _____ securities in the open market, the money supply will increase, which leads to _____ in the interest rate.
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Question

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When the Federal Reserve buys securities in the open market, it injects money into the economy, increasing the money supply. This typically leads to a decrease in interest rates as there is more money available for lending.

If the Federal Reserve _____ Securities in the Open Market