If the Fed fears inflation, it_{--------------------}by_{--------------------}government securities. A)increases aggregate demand; selling B)increases aggregate supply; buying C)decreases aggregate supply; buying D)decreases aggregate demand; selling E)decreases aggregate supply; selling

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Quizplus · Accepted Answer

The Fed sells government securities to decrease the money supply, which decreases aggregate demand, helping to control inflation.

If the Fed Fears Inflation, It--------------------by--------------------government Securities

If the Fed Fears Inflation, It_{--------------------}by_{--------------------}government Securities