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GalinKa [24]
3 years ago
10

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

Business
2 answers:
mote1985 [20]3 years ago
6 0
The federal reserve cannot increase the money supply by buying bonds
marusya05 [52]3 years ago
3 0

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

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Answer:

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3 years ago
In one or two sentences, describe why decisions are based on expected costs and benefits.
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<span>Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.</span><span />
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