Which of the following are ways that the Federal Reserve influences the U.S. economy through...
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Accounting
Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply.
a. Using open-market operations to sell securities, the Fed can decrease the Fed funds rate in an attempt to stimulate the economy.
b. Using open-market operations to buy securities, the Fed can increase the money supply, thereby decreasing interest rates, which would cause security prices to increase.
c. Using open-market operations to buy securities, the Fed can increase the money supply, thereby decreasing interest rates and subsequently increasing the rate of inflation.
d. Using open-market operations to buy securities, the Fed can decrease the money supply, thereby decreasing interest rates and subsequently increasing the rate of inflation.
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