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If the US Treasury Is Forced to Sell Bills and Bonds to Bonds

Question 45

Multiple Choice

If the U.S. Treasury is forced to sell bills and bonds to the U.S. public to finance deficits, this may ________ the price of bonds and ________ the interest rates on the bonds.


A) drive down; drive down
B) drive down; drive up
C) drive up; drive down
D) drive up; drive up

Correct Answer:

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