The FED most likely take as part of an expansionary monetary policy is buy securities on the open market.
- A nation's monetary policy is a set of measures taken to promote economic growth and manage its total money supply.
- Changing bank reserve requirements and changing interest rates are examples of monetary policy strategies.
- Typically, monetary policy is categorized as either expansionary or contractionary.
- Reserve requirements, the discount rate, and open market operations are the three monetary policy tools that the Federal Reserve frequently employs.
- Controlling an economy's money supply and the channels by which new money is supplied is known as monetary policy.
- GDP, inflation, and industry- and sector-specific growth rates are just a few examples of economic statistics that have an impact on monetary policy.
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