Assume That the Treasury Experiences a Large Increase in the Budget

question 79

Multiple Choice

Assume that the Treasury experiences a large increase in the budget deficit and issues a large number of T-bills. This action will ____ the supply of T-bills in the market and place ____ pressureon the yield of T-bills.

• A) decrease; downward
• B) decrease; upward
• C) increase; upward
• D) increase; downward

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Definitions:

Communal Utopian Experiments

Social and economic endeavors in which communities attempted to create ideal societies with equitable distribution of resources.

The Shakers

A religious sect known for its unique practices of celibacy, communal living, and rhythmic dancing, as well as its craftsmanship and furniture design.

New Harmony

A historic town in Indiana, US, known for being the site of two attempts at utopian community living in the early 19th century.

William Lloyd Garrison

An American abolitionist writer and publisher who campaigned against slavery in the United States during the 19th century.