An Open-Market Purchase of Treasury Bills by the Fed Not

question 189

Multiple Choice

An open-market purchase of Treasury bills by the Fed not only raises the money supply but also

• A)drives up T-bill prices and pushes interest rates down.
• B)drives up T-bill prices and drives interest rates up.
• C)pushes T-bill prices down and pushes interest rates down.
• D)none of these.

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