When the government buys its own securities on the open market, cash is infused into the economy and the money supply increases.

Name: When the government buys its own securities on the open market, cash is infused into the economy and the money supply increases.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

When the government buys its own securities on the open market, it is essentially creating new money by buying its own debt. This increases the money supply in the economy, as there is more cash available for lending and spending.

When the Government Buys Its Own Securities on the Open