Proponents of the interest-rate-based monetary policy transmission mechanism argue that when the Federal Reserve buys bonds, there will be

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Proponents of the interest-rate-based monetary policy transmission mechanism argue that when the Federal Reserve buys bonds, it leads to an increase in the money supply, which leads to a decrease in interest rates. Lower interest rates will incentivize businesses and individuals to borrow more money, leading to an increase in investment spending.

Proponents of the Interest-Rate-Based Monetary Policy Transmission Mechanism Argue That