Question

Why does the open economy effect occur

Answer 1

Answer:

allows open economy effects.

Explanation:

spend more and even less than what is being earned through the output. of goods and other services.

Answer 2

Answer:

The open market operations conducted by the Federal Reserve affect the money supply of an economy through the buying and selling of government securities.

Explanation:

government securities on the open market, it increases the reserves of commercial banks and allows them to increase their loans and investments; increases the price of government securities and effectively reduces their interest rates; and decreases overall interest rates, promoting business investments.