Economics

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Unemployment is on the rise though inflation is quite low. Gross Domestic Product is rising but more slowly than the goal rate. The Federal Reserve may buy government securities in open market operations in order to

A. increase the money supply and encourage economic growth.
B. decrease the money supply and encourage people to save in difficult times.
C. give consumers more money to open their own businesses.
D. force the banks to stop giving out loans in an uncertain economy.

  • Economics -

    And your answer is?

  • Economics -

    Im thinking A. Am i correct?

  • Economics -

    Yes, you're right.

  • Economics -

    increase the money supply and encourage economic growth.

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