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Suppose the fed announces that it is lowering its target interest rate by 75 basis points, or 0. 75 percentage point. To do this, the fed will use open-market operations to the money by the public.

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samuelonum1

When the Fed increases the volume of money in circulation or the money supply to the public interest rate is bound to reduce.

What is Money Supply?

In Economics, money supply is defined as the capacity of cash in the position of people in the society in any point in time. In other word, it the volume of money in circulation.

Learn more about Money Supply here:

brainly.com/question/3625390

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