janthecat5725 janthecat5725
  • 19-04-2022
  • Business
contestada

If the fed wishes to reduce nominal interest rates, it must engage in an open market ______ of bonds to ______ the money supply.

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mmaaxxgg mmaaxxgg
  • 25-04-2022

Answer: purchase, increase

Explanation: Simply put the Fed will always use OMO, open market operations, to affect the money supply. Buying bonds means increase in supply of money.

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