Register
If the government wanted the economy to expand, would the Federal Reserve (the Fed) buy or sell bonds?
31.4k views
2 votes
If the government wanted the economy to expand, would the Federal Reserve (the Fed) buy or sell bonds?

User MrGildarts
by
5.5k points

1 Answer

4 votes

Answer:

Buy

Step-by-step explanation:

If the government buys bonds in an open market purchase, the supply of money would increase.

The increase in the supply of money would increase the funds available for production activities. As a result production would increase and all things being equal GDP would increase

User Ralphilius
by
6.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.6m questions

8.8m answers

Other Questions

One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Which of the following is an example of a fixed expense? A.) Clothing B.) Rent C.) Food D.) Entertainment
A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and reporters in hopes of stimulating favorable stories about their organizations"
All of the following are fees typically charged by credit card companies EXCEPT: A. Late payment fee B. Balance Transfer fee C. Annual membership fee D. Reload fee
Individuals are free to produce and sell whatever products they wish
Link Copied!