Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

If aggregate demand is growing faster than long run aggregate supply, the Federal Reserve is most likely to
(A) sell securities on the open market
(B) increase bond prices
(C) increase income taxes
(D) decrease the discount rate
(E) decrease the required reserve ratio

Sagot :

If aggregate demand is growing faster than long run aggregate supply, the Federal Reserve is most likely to -  sell securities on the open market.

What does the Federal Reserve simply do?

The Federal Reserve offers the USA a reliable, flexible, and secure financial and monetary instrument. The Fed's most significant responsibilities are providing financial services, preserving economic equilibrium, monitoring and regulating banks, and providing nationwide monetary coverage.

The Federal Reserve, sometimes known as the Fed, is the most effective economic organisation in the USA and arguably the whole world. Its primary responsibilities include maintaining the money supply, setting hobby quotations, and controlling the economy's markets.

The Federal Reserve is not supported by funds from Congress. Its operations are typically funded by interest gained on the securities it owns, which were acquired as a result of the Federal Reserve's open market operations.

To study more about Federal Reserve

https://brainly.com/question/25817380

#SPJ4