To reduce the money supply, the New York Fed is directed to carry out _____

Name: To reduce the money supply, the New York Fed is directed to carry out _____
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Question

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To reduce the money supply, the New York Fed is directed to carry out an open-market sale. This is because an open-market sale involves the sale of government securities by the Fed to the public, which reduces the amount of money available in the economy and hence, reduces the money supply.

To Reduce the Money Supply, the New York Fed Is