The value of money falls.This might be because the Federal Reserve
A)bought bonds,which increased the money supply.
B)bought bonds,which decreased the money supply.
C)sold bonds,which increased the money supply.
D)sold bonds,which decreased the money supply.

Question

Quizplus · Accepted Answer

When the Federal Reserve buys bonds, it injects money into the economy, increasing the money supply, which can lead to a decrease in the value of money (inflation).

The Value of Money Falls