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When the Fed conducts open 鈥?market purchases, it buys Treasury securities, which increases the money supply. When the Fed conducts open 鈥?market sales,it sells Treasury securities, which decreases the money supply. How does the Federa
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What happens when the Fed conducts open market purchase? When the Fed conducts open 鈥?market purchases,it buys Treasury securities,which increases the money supply. When the Fed conducts open 鈥?market sales,it sells Treasury securities
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inflation in the long run and employment and production in the short run. When conducting an open market sale,the Fed. sells government bonds,and in so doing decreases the money supply. When conducting an open market purchase,the Fed. bu