Question: Monetary policy: when the Fed sells treasury bonds to decrease bank reserves, this is an example of contractionary monetary policy - is that correct? Is

Monetary policy: when the Fed sells treasury bonds to decrease bank reserves, this is an example of contractionary monetary policy - is that correct? Is this tool used to stabilize inflation?

When the Fed buys bonds to increase the money supply, this is to stabilize a recession by increasing RGDP?

Thank you!

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