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How does a bond sale by the fed affect the money supply?
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How does a bond sale by the fed affect the money supply?

User Sunyong
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Answer: The money decreases the money supply

Step-by-step explanation:

User Oliver Kucharzewski
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A bond sale is a debt investment that is given by an investor to a particular corporate or governmental entity and is payable over a period of time at a variable or a fixed interest rate. It can affect the money supply, or the money of the country, because it encourages debtors to keep loaning from the government to finance their personal interests.
User ZokiManas
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