If demand-pull inflation is a problem, the Federal Reserve should sell Treasury securities in the open market.

Name: If demand-pull inflation is a problem, the Federal Reserve should sell Treasury securities in the open market.
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Question

Quizplus · Accepted Answer

Selling Treasury securities in the open market is a tool used by the Federal Reserve to decrease the money supply, which can help combat demand-pull inflation by increasing interest rates and reducing spending.

If Demand-Pull Inflation Is a Problem, the Federal Reserve Should