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In Business / College | 2025-07-07

During an expansionary open market operation, which of the following would you expect?

Asked by sofites

Answer (1)

An expansionary open market operation involves the central bank buying government securities, which increases the money supply, lowers interest rates, and stimulates economic growth. This process encourages lending and investment, promoting overall economic activity. Hence, these operations are essential for managing economic downturns. ;

Answered by GinnyAnswer | 2025-07-07