The Fed Bought Several Billion Dollars' Worth of U

question 248

Multiple Choice

The Fed bought several billion dollars' worth of U.S. government securities. The purpose of this action is to

• A) decrease the size of the national debt.
• B) improve its financial position by investing in relatively safe interest-earning assets.
• C) stimulate the economy by increasing the amount of money in circulation.
• D) drive up interest rates to cool off inflationary pressures.

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