Multiple Choice
If the Fed acts to increase the money supply,
A) it will sell bonds, drive bond prices up, and drive interest rates down.
B) it will buy bonds, drive bond prices down, and drive interest rates down.
C) it will sell bonds, drive bond prices up, and drive interest rates up.
D) it will buy bonds, drive bond prices up, and drive interest rates down.
Correct Answer:
Verified
Correct Answer:
Verified
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