If the Fed buys government securities, then there is

Name: If the Fed buys government securities, then there is
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Question

Quizplus · Accepted Answer

When the Fed buys government securities, it increases the amount of money in circulation by exchanging money for the securities. This is known as open market operations and is a tool used by the Fed to control the money supply in the economy. Therefore, an increase in the supply of money is the correct option. The other options (B, C, and D) are not related to this action by the Fed.

If the Fed Buys Government Securities, Then There Is