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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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