Multiple Choice
Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of short-term Treasury securities (Treasury bills or T-bills) . This action will ____ the supply of T-bills in the market and place ____ pressure on the yield of T-bills.
A) decrease; downward
B) decrease; upward
C) increase; upward
D) increase; downward
Correct Answer:
Verified
Correct Answer:
Verified
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