When Conducting an Open-Market Purchase,the Fed

question 43

Multiple Choice

When conducting an open-market purchase,the Fed

• A)buys government bonds,and in so doing increases the money supply.
• B)buys government bonds,and in so doing decreases the money supply.
• C)sells government bonds,and in so doing increases the money supply.
• D)sells government bonds,and in so doing decreases the money supply.