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What monetary policy strategy of the federal reserve do these headlines reflect

What monetary policy strategy of the federal reserve do these headlines reflect class=

Respuesta :

Answer:

B) Encouraging business growth by putting more money into circulation.

Explanation:

Answer:

B) Encouraging business growth by putting more money into circulation.

Explanation:

The "Fed" refers to the Federal Reserve, the central banking system of the United States. The Federal Reserve can buy and sell government bonds in the free market. This is called open market operations. The Fed does this in order to increase or reduce the money supply. In this example, we know that there is little economic growth, that interest rates are decreasing and that the sale of bonds is decreasing as well. This means that the Fed wants to encourage business growth by putting more money into circulation.