Question: Select the correct words to complete this text: When the Federal Reserve wishes to engage in contractionary monetary policy, it typically uses open market operations

Select the correct words to complete this text: When the Federal Reserve wishes to engage in contractionary monetary policy, it typically uses open market operations to treasury bonds. This way, the Fed financial markets, which the money supply. This change in the money supply then the interest rate, which later investment. That is the final goal of contractionary monetary policy. It is used to slow down an overheating economy and fight against inflation

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