Which of the following actions would the Federal Reserve most likely take to reduce unemployment? (5 points) Restrict money supply Buy government securities Raise discount rate Increase reserve requirement

Respuesta :

Answer: Buy government securities.

The Federal Reserve System is the central banking system of the United States. This system exists to maintain a stable economy. One strategy the Federal Reserve uses to achieve this is by buying government securities.

This practice increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. It is a measure that can be used when unemployment is high.