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Business, 27.01.2020 06:31 kcnawlay170

Which best explains why the money supply is increased when the fed buys t-bonds on the open market? the purchase of bonds reduces the available supply of bonds, which drives up bond prices. the purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money. the purchase of bonds leads to a reduction in the discount rate, which provides banks with an incentive to loan more money. the purchase of bonds increases the demand both for bonds purchases and for money in general.

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Which best explains why the money supply is increased when the fed buys t-bonds on the open market?...

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