If the Fed wishes to increase the money supply via open market operations, it should _____ Treasury bonds.

Business

1 answer:

Mashutka [201]1 year ago

6 0

To increase the money supply using the open market operation strategy, the Fed should buy Treasury Bonds.

<h3>How can the Fed increase money supply?</h3>

Increasing money supply would mean the Fed releasing more currency into the U.S. economy.

This can be done by buying back treasury bonds from the public because the Fed would pay for those bonds with currency which would then float into the economy.

Find out more on open market operations at brainly.com/question/14256204.

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