If the monetary authorities wished to rein in inﬂation, they would buy government securities in the open market.

Name: If the monetary authorities wished to rein in inﬂation, they would buy government securities in the open market.
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Question

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To rein in inflation, the monetary authorities would sell government securities in the open market to decrease the supply of money in circulation. Buying government securities would increase the money supply and exacerbate inflation.

If the Monetary Authorities Wished to Rein in Inﬂation, They