If the Fed Decides to Buy T-Bills, It Increases the Demand

question 82

Multiple Choice

If the Fed decides to buy T-bills, it increases the demand for T-bills.How will this affect the price of T-bills and the interest rate?

• A)T-bill prices fall and interest rates fall.
• B)T-bill prices rise and interest rates rise.
• C)T-bill prices rise and interest rates fall.
• D)T-bill prices fall and interest rates rise.

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Definitions:

Developmental Viewpoint

A perspective focusing on how human beings grow, change, and acquire new abilities and understanding over the course of their life.

Multifinality

The principle in developmental psychology that similar early experiences can lead to different outcomes.

Symptomology

The study and identification of symptoms associated with specific diseases or disorders.

Multidimensional Models

Conceptual frameworks or theories that incorporate various dimensions or aspects to explain a phenomenon or behavior.