The Fed will use open market operations to decrease the supply of money by selling bonds to the public
What is open-market operations?
Open market operations are one of the tools that the Fed uses to regulate the supply of money and credit in the economy.
It entails buying or selling of securities in the market to either increase or decrease the amount of money in circulation. Open market operations can be used for either expansionary or contractionary policies.
Hence, the Fed will use open market operations to decrease the supply of money by selling bonds to the public.
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