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

question 259

Multiple Choice

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


Definitions:

Dimensional-analysis

A process of converting units of measurement to solve problems involving measurements of various dimensions.

Kilometers

A unit of length in the metric system equal to 1000 meters.

Miles

A unit of distance or length measure equal to 5,280 feet or approximately 1.609 kilometers, used mainly in the United States.

Square

A polygon with four equal sides and four right angles; also, the mathematical operation of multiplying a number by itself.

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