The purpose of open market purchases is to:
A)decrease the government budget deficit.
B)increase the government budget deficit.
C)increase consumer and investment spending.
D)decrease consumer and investment spending.

Question

Quizplus · Accepted Answer

Open market purchases involve the government buying securities such as bonds from the market, increasing the amount of cash in circulation. This can lead to an increase in consumer and investment spending as people have more money to spend or invest. It does not directly impact the government budget deficit. Therefore, option C is the best choice.

The Purpose of Open Market Purchases Is To