pt 3

pt 3
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  • Mr. Dub then settles in the wallet of Mr. Greenback
  • The FOMC is selling bonds to decrease inflation!!!!!!
  • This leads to an idea called money contraction, which means that Dub will be worth more because Mr. Greenback will obtain more good for his dollar.
  • On the contrary, the U.S. government could have bought bonds, which would raise the supply of money in circulation.
  • These actions performed by the U.S. government to influence the money suplly are known as.....
  • Open Market Operations!!!! These are vital to influencing the money supply and are the most common form used by the U.S. government
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