If the Federal Reserve uses open market operations to offset a recession, the Fed_{--------------------} government securities in order to_{--------------------} the federal funds rate. A)buys; raise B)buys; not change C)buys; lower D)sells; raise E)sells; lower

Question

Quizplus · Accepted Answer

The Federal Reserve buys government securities to increase the money supply, which lowers the federal funds rate, stimulating economic activity to counteract a recession.

If the Federal Reserve Uses Open Market Operations to Offset