When the Fed Increases the Money Supply by Buying Treasury

Multiple Choice

When the Fed increases the money supply by buying Treasury securities, it will

A) decrease short-term interest rates to a greater degree than long-term interest rates.
B) decrease long-term interest rates to a greater degree than short-term interest rates.
C) increase short-term interest rates to a greater degree than long-term interest rates.
D) increase long-term interest rates to a greater degree than short-term interest rates.