The federal reserve can increase the money supply by buying bonds. true or false?

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asked Jan 4, 2017 177k views

2 Answers

Jdd · Answer 1 · 2017-01-09T07:25:11+0000

TRUE. If the Fed wants to increase the money supply, it can do so by buying government bonds and if it wants to reduce the money supply it can do so by selling bonds from its account

The federal reserve can increase the money supply by buying bonds. true or false?

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