If the Fed wants to increase the money supply through open market operations, it will Group of answer choices purchase government securities. lend more reserves to commercial banks. first purchase, then sell, government securities. sell government securities.

Respuesta :

If the feds want to increase the money supply in the economy they would:  purchase government securities.

How does the fed raise money supply?

The federal reserve of the United States is known to raise its money supply when they purchase securities.

They do this by using newly created money and also lowering the interest rate that is in the economy.

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