Question

The Federal Reserve's Open Market Committee has decided that the federal funds rate should be 0.5 percent rather than the current rate of 1.25 percent. The appropriate open market action is to _____ Treasury bills to _____ money _____.

Answer 1

In this case, the proper open market action is to sell Treasury bills to decrease money supply.

What is an Open Market Action?

An open market action refers to the act of the Federal Reserve Bank to purchase or sell government securities with the aim of contracting or increasing the supply of money in the economy and alter the position of interest rates.

Hence, it is right to state that In this case, the proper open market action is to sell Treasury bills to decrease money supply.

Learn more about open market actions at:
brainly.com/question/12192660
#SPJ12