When the Fed buys bonds the supply of money increases and so aggregate demand shifts right.
When the Fed buys bonds, it is known as an expansionary monetary policy. Expansionary monetary policy increases the supply of money in the economy.
When the supply of money increases, disposable income increases and this increases the demand of goods in the economy. This shifts the aggregate demand cuve to the right.
To learn more about monetary policies, please check: https://brainly.com/question/25716528
