The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations. Ignoring other factors, this is likely to result in:

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06-08-2020
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The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations. Ignoring other factors, this is likely to result in:

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topeadeniran2 topeadeniran2 · Answer 1 · 2020-08-06T05:17:28+02:00

Answer: decrease in interest rates and an increase in inflation

Explanation:

From the question, we are informed that The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations.

This will result in a reduction in the interest rate and since there's more money in circulation, it will bring about an increase in the prices of goods.