Solved

If the Fed Buys Government Bonds on the Open Market,which

Question 108

Multiple Choice

If the Fed buys government bonds on the open market,which of the following will occur?


A) The money supply will contract.
B) The market rate of interest on corporate bonds will increase.
C) The market rate of interest on government bonds will increase.
D) The interest rate will fall.
E) The amount of investment spending will decrease.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions