Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: buys bonds from the public, which decreases the money supply. sells bonds to the public, which decreases the money supply. sells bonds to the public, which increases the money supply. buys bonds from the public, which increases the money supply. b. If the Fed wants to increase interest rates, it should make an. This would the money supply and achieve the increase in interest rates.
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Home » Business » Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: buys bonds from the public, which decreases the money supply.