During a depression,the best strategy of the Federal Reserve is to

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During a depression, the best strategy of the Federal Reserve is to buy government securities. This is because buying government securities increases the money supply in the economy, which lowers interest rates and encourages lending and spending. This increased spending boosts aggregate demand, which helps to pull the economy out of a recession. Selling government bonds, as in options A, B, and C, would have the opposite effect by reducing the money supply and increasing interest rates, which would further depress economic activity.

During a Depression,the Best Strategy of the Federal Reserve Is