Question

When the government injects money into the economy,.consumers may have more disposable income, which may lead to

Answer 1

Answer:

increases in taxes.

Explanation:

The Federal Reserve buys and sells government securities to control the money supply and interest rates. This activity is called open market operations.  To increase the money supply, the Fed will purchase bonds from banks, which injects money into the banking system. It will buy bonds to reduce the money supply, increasing the taxes of the people.

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