234k views
0 votes
The fed engages in open market operations and sells government securities. the result is?

User Zacho
by
4.7k points

1 Answer

1 vote

Answer:

The reduction in money supply.

Step-by-step explanation:

When the fed engages in open market operations and sells government securities, they reduce the amount of money in circulation thereby reducing money supply.

User Desolat
by
5.0k points