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Please show change in graph 3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the
Please show change in graph
3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply. Using open-market operations to sell securities, the Fed can increase the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. Using open-market operations to buy securities, the Fed can increase the money supply, thereby decreasing interest rates, which would cause security prices to increase. Using open-market operations to sell securities, the Fed can decrease the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. Using open-market operations to buy securities, the Fed can increase the money supply, thereby increasing interest rates, which would cause security prices to decrease. Suppose the FOMC's policy directive instructs the Trading Desk at the New York Fed to decrease the federal funds rate because the U.S. economy is experiencing a recession, and the FOMC wants to stimulate spending in the economy. 3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply. Using open-market operations to sell securities, the Fed can increase the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. Using open-market operations to buy securities, the Fed can increase the money supply, thereby decreasing interest rates, which would cause security prices to increase. Using open-market operations to sell securities, the Fed can decrease the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. Using open-market operations to buy securities, the Fed can increase the money supply, thereby increasing interest rates, which would cause security prices to decrease. Suppose the FOMC's policy directive instructs the Trading Desk at the New York Fed to decrease the federal funds rate because the U.S. economy is experiencing a recession, and the FOMC wants to stimulate spending in the economyStep by Step Solution
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