If the federal reserve sells government bonds to the public, we can expect reserves in the banking system to _____________ and we can expect the money supply to _____________.

Respuesta :

If the federal reserve sells government bonds to the public, we can expect reserves in the banking system to decrease in the money supply. and we can expect the money supply to decrease.

The Federal Reserve System is the important banking machine of america of America. It become created on December 23, 1913, with the enactment of the Federal Reserve Act, after a sequence of economic crises caused a choice for centralized manage of the financial machine to relieve crises. economic crisis.

The Federal Reserve, because the nation's financial coverage regulator, affects the provision and price of cash and credit score to sell a wholesome economy. Congress has given the Fed identical dreams for financial coverage: first, most employment; and second, strong prices, because of this that low and strong inflation.

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