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20 May, 07:04

In response to rising inflation, the Federal Reserve may sell government securities in open market operations in order to:

increase the money supply and encourage economic growth.

decrease the money supply and encourage people to save in difficult times.

give consumers more money to open their own businesses.

force the banks to stop giving out loans in an uncertain economy.

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Answers (1)
  1. 20 May, 07:20
    0
    The rational answer would be: A. increase the money supply and encourage economic growth.
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