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Zielflug [23.3K]
3 years ago
15

An open market operation by a countrys central bank to reduce the unemployment rate would be to ​

History
1 answer:
Sloan [31]3 years ago
3 0

Decrease the interest rate and increase the aggregate demand.

<u>Explanation:</u>

If the interest rate is low then the aggregate demand(need for goods and other services) will get increased. Open Market Operations (OMO) is the process of selling or purchasing insurances(securities) to control the money supply in banks all over the country.

When the Fed needs to low interest rate, it purchases the insurances and sells the insurance when it wants to increase the interest rate. The goal of the OMO is to lower unemployment. Since unemployment will result in increasing inflation that in turn increases the interest rate.

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Thomas Nast rose to fame in the late 1860s when his satirical comics led directly to the arrest of Boss Tweed, for the corrupted “Tweed Ring” he ran in New York City bribing city officials, rigging elections, and corrupting the judiciary.

Tweed attempted to bribe Nast offering him up to $500,000 to study art in Europe. Failing to bribe Nast, Tweed threatened to have the Board of Elections boycott Harper’s books, where Nast worked, but the magazine´s board chose to support the cartoonist depicting Tweed as a thief.

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