Question

The government sells bonds to raise money.
True
False

Answer 1

true ( a quick internet answer )

Answer 2

True

Step-by-step explanation:

If the Fed buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.