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sell more government bonds

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Q: What happens to the open market operations during inflation?
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What is meant by open inflation?

when prices go up freely due to the imbalance between demand and supply then that situation is called open inflation. this happens in a market economy .


How does the federal reserve buy and sell government securities?

This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.


What best explains what happens to the exchange of a floating currency?

The exchange rate for that currency changes depending on the operations of the free market


What best explains what happens to the exchange rate of a floating currency?

The exchange rate for that currency changes depending on the operations of the free market


What is the difference between a 'market requirements' and an 'operations resource' view of operations strategy?

Ask Dr Alex bananas and he will answer you


What happens when the government increases the money supply?

There several things that happen when the government increases the money supply. This may cause inflation as there will be more money in the market than goods.


What is a period of rising prices called?

inflation


What happens to the price level when the government buys bonds?

when the govt. performs open market operations, or puchases sercurities such as bonds, the price level increases.


What does policy rate mean?

In economics, the policy rate (policy interest rate) is the short-term interest rate that the central bank manipulates through open-market operations. Open-market operations include the sale and purchase of bonds. During times of recession, the central bank favors a low policy rate that would help close the GDP gap. When a country is experiencing heavy economic growth, the central bank tends to favor a higher policy rate that would curb inflation.


What are the operations of primary market?

dabang


How do you treat fixed assets in inflation accounting?

At current Market Value


How did the increase of trade in the global led to inflation?

As more products came on the market, wealth increased, and countries started making more money. As more money flooded the market, so it led to inflation.